Stocks surged for a third day. Taiwan Semiconductor Manufa-cturing Co (TSMC, 台積電) gained on optimism orders will rise after Texas Instruments Inc raised its quarterly sales and profit forecasts.
The TAIEX gained 110.75, or 2.4 percent, to close at 4,793.93. Almost 19 stocks rose for every two that fell. The total value of trade was NT$103.95 billion (US$2.98 billion), the highest since Nov. 18.
Texas Instruments, whose chips powered half the mobile phones sold last year, said net income in the fourth quarter will be about US$0.01 a share, up from a forecast of break-even, and sales will drop 7 percent from the third quarter, instead of the 10 percent decline predicted in October.
"It confirms the recovery," said Vincent Shih, who helps manage NT$9.2 billion in stocks at Truswell Securities Investment Trust Co (
"Demand for products like digital cameras and computers is stabilizing a quarter earlier than we'd expected," Shih said.
TSMC, which makes chips for Texas Instruments, rose NT$1.50, or 2.9 percent, to NT$53.50, its highest since Aug. 23.
China Motor Co (中華汽車) rose NT$3.50, or 6.9 percent, to NT$54.50. The vehicle maker said sales last month jumped 76 percent from a year ago.
Compal Electronics Inc (仁寶電腦), whose customers include Dell Computer Corp, gained NT$1.10, or 2.8 percent, to NT$40.90. Sales last month surged 38 percent to NT$12.5 billion as shipments of handheld computers surged.
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