Formosa Chemical leads TAIEX 11.82-point rise

The TAIEX rose, led by Formosa Chemicals & Fibre Corp (台灣化纖), after UBS Warburg upgraded the nation's largest maker of artificial fiber and cloth by market value to "strong buy."

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) dropped after Goldman Sachs Group Inc downgraded the chipmaker to "in-line" from "outperform."

The TAIEX gained 11.82, or 0.3 percent, to close at 4,676.47.

Formosa Chemicals rose NT$2.10, its daily limit, to NT$33.50. Formosa Plastics Corp (台塑), climbed NT$2.20, or 5.6 percent, to NT$41.50. Formosa Chemicals and Formosa Plastics accounted for almost three-quarters of the benchmark's advance.

"We will be increasing our stake" in petrochemical companies by about 3 percent to 5 percent this week, said Louis Lee, who helps manage NT$1.4 billion (US$41 million) including shares of Formosa Plastics, at President Investment Trust Corp.

"The outlook for these companies is better than it was last year," Lee said.

Taiwan Semiconductor shed NT$0.90, or 1.9 percent, to NT$46.80. "Taiwan Semiconductor's shares rose more than 40 percent since mid-October following media reports in Taiwan about a boost in orders," said Jonathan Ross, a Goldman analyst. "We thought the reports were misleading."

Chunghwa Telecom Co (中華電信) fell NT$0.50, or 1 percent, to NT$49.50. The company may buy back about 10 percent of outstanding shares and write off the stock after the government failed four times earlier this year to sell a 5.7 percent stake to domestic investors.

International Commercial Bank of China (中國商銀) rose NT$0.40, or 1.9 percent, to NT$21.70. CTB Financial Holding Co (交銀金控), which is combining with ICBC, may seek an overseas investor in what will become the country's biggest publicly traded lender by assets.

Chunghwa Picture Tubes Ltd (中華映管) fell NT$0.50, to NT$13.30.