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TAIEX climbs after rate cut

Winners and losers * United Microelectronics + 3.7 percent * Chia I Industrial Co + 2.5 percent * CMC Magnetics Corp + 2.4 percent * Macronix International Co + 6.3 percent * Nan Ya Plastics Corp + 1.7 percent * Chi Mei Optoelectronics Corp - 2.9 percent

Stocks rose, led by United Microelectronics Corp (聯電), after the US Federal Reserve cut its benchmark interest rate by half a percentage point, boosting the allure of equity investments.

The TAIEX climbed 32.64, or 0.7 percent, to 4,757.98 at the 1:30pm close in Taipei. More than three stocks rose for every two that fell. The total value of trade was NT$132.04 billion (US$3.81 billion), the highest since April 25.

The Fed cut borrowing costs by half a point to 1.25 percent, the lowest since July 1961.

"That'll boost the market for a few days,"said Alex Chou, who manages NT$500 million in stocks at Transcend Securities Investment Trust Co (傳山投信). "It'll encourage more funds to move into stocks."

United Microelectronics, whose US customers include Texas Instruments Inc and Motorola Inc, rose NT$1, or 3.7 percent, to NT$28.10.

Profit at the supplier of made-to-order chips may rise after communications-chip makers such as Texas Instruments boosted orders, the a Chinese-language newspaper reported.

Chia I Industrial Co (嘉益工業) rose NT$0.15, or 2.5 percent, to NT$6.20. The steelmaker raised its pretax profit forecast for the year by 25 percent to NT$386.7 million.

Chi Mei Optoelectronics Corp (奇美光電) fell NT$1, or 2.9 percent, to NT$33.90. The maker of flat-panel displays forecast average selling prices in the fourth quarter will drop 15 percent from the previous three months.

CMC Magnetics Corp (中環) rose NT$0.40, or 2.4 percent, to NT$17.10.

The world's second-largest maker of recordable compact discs plans to raise prices in January after a price increase between September and November had no effect on rising orders from its largest customers, a Chinese-language newspaper reported, citing Andria Wong, a vice president.

International Commercial Bank of China (中國商銀) rose NT$1.10, or 5.4 percent, to NT$21.60 after the government set a reserve price for its auction of a stake in the lender that was 24 percent higher than the closing price yesterday.

Macronix International Co (旺宏電子) added NT$0.75, or 6.3 percent, to NT$12.75.

The maker of memory chips for electronic games said sales last month rose 5 percent from a year ago to NT$2 billion.

Nan Ya Plastics Corp (南亞塑膠) rose NT$0.50, or 1.7 percent, to NT$30.80.

The company received government approval to invest $18.5 million in a polyester plant in Kunshan, near Shanghai.
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