Taiwan stocks strengthen, led by electronics firms

The TAIEX rose for a fifth day, led by chipmakers such as Winbond Electronics Corp (華邦電子), after Goldman, Sachs & Co said on Friday there were signs the demand for computer-memory chips was improving. Winbond rose NT$0.80, or 4 percent, to NT$21.

The TAIEX rose 122.63, or 2.3 percent, to 5,377.86.

Within the index, almost two stocks rose for every one that fell. The total value of trade was NT$101.3 billion (US$3 billion).

The electronics index has gained 6 percent during the past four days after memory-chip prices surged a 10th this month.

"There are chances of a rebound in share prices as investors regain confidence on hopes of better sales reports this month," said Joe Chang, who helps manage US$298 million in equities at President Investment Trust Corp (統一投信).

C.P. Technology Co (撼訊科技) surged NT$1.70, or 6.8 percent, to NT$26.90 after the maker of products enabling Internet access said it will spend as much as NT$77.7 million to buy back 2.1 million shares, or 8.6 percent of shares outstanding, starting yesterday until Sept. 6.

Eva Airways Corp (長榮航空) rose NT$0.35, or 2.6 percent, to NT$14 on optimism about the implementation of direct transport links with China.

Merry Electronics Co (美律) surged NT$2.90, or 7 percent, to NT$44.50 after the maker of mobile-phone receivers and microphones said June sales rose 10 percent from May to NT$122 million as shipments to GVC Corp (致福).