TAIEX continues gains as Formosa, Quanta advance

Stocks gained for a third day, paced by Formosa Plastics Corp (台塑), after surging oil costs prompted plastics makers to increase chemical prices to maintain profit margins.

TAIEX added 63.54, or 1.4 percent, to close at 4689.86, its highest since Dec. 11. About seven stocks rose for every two that dropped. The total value of trade was NT$88.53 billion (US$2.55 billion).

Formosa Plastics, the nation's largest maker of chemicals such as ethylene used to make plastic, rose NT$0.70, or 1.5 percent, to NT$47.90. Nan Ya Plastics Corp (南亞塑膠), the country's largest plastics maker, gained NT$1, or 3.2 percent, to NT$32.

On Jan. 3, crude oil for February delivery rose 3.9 percent to US$33.08 on the New York Mercantile Exchange, its highest closing price since Nov. 30, 2000.

"Chemical prices are up because of the strong oil price," said Chu Yen-min, a chemicals analyst at Yuanta Core Pacific Securities Co (元大京華證券). "While oil prices remain high, it'll be difficult for chemical prices to fall."