Electronics stocks rebound to boost TAIEX

Taiwan stocks rose, led by companies such as Asustek Computer Inc (華碩電腦), as some investors bet the electronics index's 10 percent drop in the previous eight sessions already reflected the effect of slowing orders on earnings.

The TAIEX surged 46.44, or 1 percent, to close at 4,595.67. The index, which fell as much as 1 percent, rebounded two minutes after dropping below yesterday's 60-day moving average of 4,504.

Asustek, whose shares have slipped 18 percent since Dec. 10, rose NT$3.50, or 5.7 percent, to NT$65.

"It's a technical rebound after electronics stocks fell so much," said Michelle Kuo, who helps manage NT$2 billion in stocks at Union Securities Investment Trust Corp (聯邦投信). "I've seen no change in chip prices or any other news to suggest the weak outlook is any different."

Within the index, almost five stocks fell for every four that rose. The total value of trade was NT$115.51 billion (US$3.31 billion), the highest since Nov. 11. For the week, the index rose 0.2 percent.

Chi Mei Optoelectronics Corp (奇美光電) fell NT$0.20, or 0.7 percent, to NT$29. Taiwan's second-largest maker of flat-panel displays said it received a NT$20 billion loan from a group of domestic banks to help finance construction of a new plant.

Advanced Reality Technology Inc (亞全科技) fell NT$0.20, or 0.8 percent, to NT$25.40. The designer of semiconductors used in hand-held computers widened its loss forecast by 162 percent to NT$120.8 million.

China Steel Corp (中鋼) rose NT$0.50, or 2.6 percent, to NT$20. The Taiwan government nominated Lin Wen-yuan (林文淵), a former chairman of Taiwan Power Co (台電), to replace Kuo Yen-too (郭炎土) as head of the steelmaker.

Helix Technology Inc (和立聯合) fell NT$0.60, or 4.1 percent, to NT$14.10. The maker of vacuum process equipment slashed its profit forecast for the year by 70 percent to NT$108.7 million.

Hua Nan Financial Holdings Co (華南金控) gained NT$0.60, or 2.5 percent, to NT$25.10. The nation's fifth-largest financial company may form an alliance with foreign investors to help expand its businesses, a local newspaper reported, citing Hua Nan chairman Lin Ming-cheng (林明成). Hua Nan executive vice president Ed Liu (劉茂賢) confirmed the report.

Hwacom Systems Inc (華電聯網) lost NT$1, or 5 percent, to NT$19. The supplier of integrated telecommunications services cut its pretax profit forecast for the year by 84 percent to NT$10.8 million.

Picvue Electronics Ltd (碧悠電子) shed NT$0.40, or 3 percent, to NT$13.05. The company said a manager at its finance department embezzled about NT$60 million.