China Airlines rises in mixed results

Stocks rose for a sixth day as China Airlines Co (華航) surged after a Chinese-language newspaper reported that Taiwan is prepared to discuss opening direct transport links with China.

The TAIEX rose 5.35, or 0.1 percent, to 4,463.52. The transportation index rose 4.4 percent to 44.85. More than three stocks rose for every two that fell. The total value of trade was NT$93.5 billion.

China Airlines surged 6.6 percent to NT$13.65. Taiwan may open direct links with China after the two sides successfully complete talks on the issue and as long as both sides show ``good will,'' one newspaper reported on Saturday, citing President Chen Shui-bian (陳水扁).

The transportation index has risen 16 percent since Thursday when Chinese Vice Premier Qian Qichen (錢其琛) said Beijing is prepared to consider direct links between Taiwan and China as an economic rather than a political issue.

Taiwan Semiconductor Man-ufacturing Co (TSMC, 台積電) fell 2.2 percent to NT$45.50. The world's largest supplier of made-to-order chips, whose shares surged 30 percent last week, will probably say tomorrow third-quarter profit fell from the second quarter, according to a Bloomberg News survey.

"I'm booking some profits after electronics stocks rose so much last week," said Eric Yeh (葉時雙), who manages NT$600 million in stocks at Transcend Securities Investment Trust Co (傳山投信).

Fubon Financial Holding Co (富邦金控) fell NT$0.30, or 1 percent, to NT$29.80. The owner of Taiwan's largest non-life insurer posted third-quarter net income of about NT$3.56 billion, compared with NT$3.16 billion in the second quarter. The stock started trading as a holding company in December.

HannStar Display Corp (瀚宇彩晶) fell NT$0.5, or 0.4 percent, to NT$13.40. Taiwan's fourth-largest flat-panel display maker borrowed NT$12.5 billion from seven banks to help fund construction of a new plant.

Winbond Electronics Corp (華邦電子), Taiwan's largest computer-memory-chip maker by market value, rose NT$1.10, or 6.9 percent, to NT$17.

D-Link Corp (友訊) rose NT$0.10, or 0.3 percent, to NT$31.50. The communications-equipment maker plans to spend as much as NT$903 million to buy back 25.8 million shares, or 5 percent of its outstanding shares, starting Friday and ending on Dec. 19.

Pontex Polyblend Co (邦泰複合材料) fell NT$0.10, or 0.6 percent, to NT$17.50 because of a slower- than-expected recovery in demand for flat-panel display screen monitors.