MediaTek, China Steel, AU Optronics gain

Stocks rose for the first day in four. MediaTek Inc (聯發科技) gained after the world's biggest designer of chips for DVD players said higher sales and lower costs will counter falling prices this quarter.

"I'm buying electronics stocks whose sales should stay near their peak this month and next," said David Chu, who helps manage NT$2 billion (US$57 million) in stocks at Reliance Securities Investment Trust Co (德信投信).

Chu said he's buying shares of semiconductor chip packagers such as Advanced Semiconductor Engineering Inc (日月光半導體).

The TAIEX rose 34.09, or 0.7 percent, to close at 4,646.69.

Within the index, more than three stocks rose for every two that fell.

The total value of trade was NT$63 billion.

For the week, the index fell for a second week, sliding 1.3 percent.

Wan Hai Lines Ltd (萬海航運), the nation's largest shipping company by market value, dropped NT$0.90, or 3.7 percent, to NT$23.50 on concern the establishment of direct links will be delayed.

The Mainland Affairs Council said it won't be able to present a technical report on direct transport links with China by the end of the month, as it had previously agreed.

"A delay in the timetable for direct transport links will impact transport stocks," Chu said.

MediaTek rose NT$7, or 2.5 percent, to NT$292. The chip designer forecasts fourth-quarter gross profit margins will at least equal its 45 percent margin rate in the third quarter.

AU Optronics Corp (友達光電) rose NT$0.10, or 0.4 percent, to NT$23.40. Flat-panel display prices are close to bottoming, a local newspaper reported, citing AU Optronics chairman Lee Kun-yao (李焜耀).

China Development Financial Holding Corp (中華開發金控) drop-ped NT$0.10, or 0.8 percent, to NT$13.30.

China Steel Corp (中鋼) rose NT$0.30, or 1.6 percent, to NT$19.30. The steelmaker raised domestic prices for a fourth time this year on Thursday after the market closed.

It raised product prices by between NT$200 a ton and NT$1,200 a ton for the first quarter.

Powerchip Semiconductor Corp (力晶半導體) rose NT$0.10, or 0.8 percent, to NT$12.35.

The price of a benchmark type of dynamic random access memory chip jumped 4.8 percent to US$2.62 yesterday, its biggest percentage gain since Oct. 28, according to DrameXchange.com, a Taiwan-based clearinghouse.

Southern Information Systems Inc (南方資訊) fell NT$0.20, or 3.1 percent, to NT$6.30. The maker of modems and other communications equipment widened its 2002 loss forecast by 51 percent to NT$242.6 million.

Springsoft Inc (思源科技) rose NT$2, or 2.4 percent, to NT$87. The software designer received an order from Sanyo Semiconductor Corp for fault detection software for use during its chip designing process.

Uni-President Enterprises Co (統一企業) rose NT$0.10, or 0.9 percent, to NT$11.30. The company plans to sell as much as NT$2 billion of five-year secured bonds to repay loans.