TAIEX breaks seven-day decline, gains 0.3 percent

The TAIEX rose yesterday for the first day in eight. Hua Nan Financial Holdings Co (華南金控) gained on a report the nation's fifth-largest finance company expects profit to surge next year after cleaning up its balance sheet.

Taiwan Semiconductor Manu-facturing Co (台積電) slumped NT$2.10, or 4.4 percent, to NT$45.90. The US-traded shares of the world's largest supplier of made-to-order chips fell 5.5 percent to US$7.35 on Wednesday, their biggest drop since Nov. 11.

"There's no growth story with the electronic stocks, so we're shifting funds into traditional stocks such as steelmakers and financial-related stocks," said Joseph Hsu, who helps manage NT$600 million (US$17 million) in stocks at Fuh Hwa Cheng Ching Capital Management Co (復華證金投顧).

The TAIEX rose 13.30, or 0.3 percent, to close at 4,549.23. The index dropped 6 percent in the previous seven days.

Hua Nan Financial rose NT$1.50, or 6.5 percent, to NT$24.50. The owner of Taiwan's fifth-largest bank by assets, which forecasts a NT$26.3 billion loss this year, expects earnings to rebound next year after it writes off NT$52.4 billion of non-performing loans.

Within the index, more than seven stocks rose for every four that fell. The total value of trade was NT$85.33 billion.

Ability Enterprise Co (佳能) fell NT$1.20, or 4.1 percent, to NT$28.10. The distributor of copiers and facsimile machines for companies such as Canon Inc cut its profit forecast for the year by 36 percent to NT$279.48 million.

Asia Vital Components Co (奇鋐科技) dropped NT$0.50, or 1.3 percent, to NT$39.50. The maker of fan coolers for computers and the chips used inside them plans to sell bonds convertible into shares to overseas investors to raise US$30 million to buy materials from overseas.

Asustek Computer Inc (華碩電腦), the nation's largest maker of boards connecting the chips that run computers, lost NT$2, or 3.2 percent, to NT$61.50. Demand for circuit boards used to make computer motherboards dropped as much as a fifth this week from a month ago, a local newspaper reported, citing circuit-board suppliers.

Some motherboard makers' inventories have risen after shipments last month fell below the companies' expectations, the newspaper reported.

K-Bridge Electronics Ltd (科橋電子) shed NT$0.95, or 6.8 percent, to NT$13. The printed-circuit-board maker plans to sell bonds convertible into shares to overseas investors to raise US$13.5 million to buy materials from overseas.

Mitac International Corp (神達電腦) fell NT$0.10, or 0.7 percent, to NT$13.45.

Demand for electronics products may rise a 10th next year although supply will rise more than 50 percent, the DigiTimes newspaper reported, citing Mitac Vice Chairman Francis Tsai (蔡豐賜). First-quarter demand will probably fall from the fourth quarter, Tsai said.

Prime Optical Fiber Corp (卓越光纖) lost NT$0.05, or 0.5 percent, to NT$10.95. The optical-fiber maker plans to sell bonds convertible into shares to overseas investors to raise US$10 million to build a factory and buy equipment.