Elitegroup leads gainers as Nanya Technology falls

Stocks rose yesterday after a local Chinese-language newspaper reported that this month's shipments of computer motherboards may climb more than a 10th from August.

Elitegroup Computer Systems Co (精英電腦), the nation's third-largest maker of boards connecting chips that run computers, led the gain.

"Profit margins might not be that good, but at least sales are rising," said Kevin Liu, who helps manage about NT$3 billion (US$86 million) in stocks at Barits Securities Investment Trust Co (倍利投信).

"The question is whether sales will keep rising in October," he said.

TAIEX added 8.66, or 0.2 percent, to 4,491.31. More than two stocks rose for every one that fell. The total value of trade was NT$51.97 billion (US$1.5 billion).

Elitegroup advanced 4.1 percent to NT$88.50.

Nanya Technology Corp (南亞科技) fell NT$1.10, or 4.2 percent, to NT$25.10. The nation's biggest maker of high-speed memory chip said it will apply to sell 350 million new shares in Taiwan, giving it an alternative plan in case it scraps a planned share sale to overseas investors.

Sercomm Corp (中磊電子) rose NT$0.20, or 0.7 percent, to NT$30.80. The maker of network servers for computer systems raised its pretax profit forecast by half to NT$134.7 million after sales exceeded expectations.

China Airlines Co (華航) fell NT$0.10, or 0.9 percent, to NT$11.55. The airline received a NT$4.8 billion loan from Hua Nan Commercial Bank (華南銀行) to buy new planes.

Far Eastone Telecommunications Co (遠傳電信) fell NT$0.50, or 1.7 percent, to NT$29.50. Taiwan's fourth-largest mobile-phone operator should succeed in combining with KG Telecommunications Co (和信電訊), a Chinese-language newspaper reported, citing Far Eastone chairman Douglas Hsu (徐旭東).

K Laser Technology (光遠科技) rose NT$0.40, or 1.1 percent, to NT$36.60. The maker of holographic materials received approval from the Securities and Futures Commission to sell bonds convertible into shares to overseas investors.

K Laser in April submitted a plan to raise US$20 million through the bond sale.

Powerchip Semiconductor Corp (力晶半導體) rose NT$0.80, or 6.3 percent, to NT$13.60. Taiwan's third-largest computer-memory-chip maker said the proportion of functional chips produced on silicon wafers at its new plant reached as much as 80 percent. Powerchip will speed up production in the fourth quarter, with maximum capacity of 15,000 wafers a month.