Taiwanese stocks gained yesterday, paced by manufacturers such as Nan Ya Plastic Corp (南亞科技), on optimism the economy will improve this year as the country's export figures showed shipments to China expanded last month.
"Investors are rushing to buy traditional manufactures because cyclical products like plastics will be the first to benefit as economy recovers," said Simon Chao, who manages President Investment Trust Corp's (統一投信) NT$600 million Infrastructure Fund. ``People also tend to renew their hopes on economy at the beginning of the year."
Chao said he is buying plastic, steel and some cement makers and staying away from electronics.
The TAIEX gained 135.85, or 2.9 percent, to 4,836.93 at the close, its highest level since Aug. 27.
Within the index, almost seven stocks rose for every one that dropped.
Taiwanese exports to China surged 161 percent last month from a year ago. China's economy expanded 8 percent last year, almost triple the pace forecast for the world as a whole by the International Monetary Fund.
Nan Ya Plastic Corp, a unit of Taiwan's largest plastic maker, the Formosa Group (台塑集團), rose NT$2.2, or 6.9 percent, to NT$34.10.
Nan Ya unit Formosa Petrochemical Corp (台塑石化) was considering raising the prices of its gasoline yesterday, the Central News Agency reported.
Taiwan Cement Corp (台泥) rose NT$0.90, or 6.8 percent, to NT$14.15. The stock has gained 37 percent since Taiwan's largest cement maker raised its product prices by about 8 percent on Dec. 31.
AU Optronics Corp (友達光電), Taiwan's largest maker of flat-panel displays, rose NT$0.60, or 2.7 percent, to NT$23.20. Taiwan on Tuesday passed a law extending the exemption on equipment used to make chips and flat-panel displays from import tariffs, a Chinese-language newspaper reported.
Benq Corp (明基電通), Taiwan's largest mobile-phone maker, rose NT$0.40, or 1 percent, to NT$41 after it said December sales rose 19 percent from a year ago.
China Airlines (華航), Taiwan's largest air carrier, rose NT$0.10, or 0.6 percent, to NT$17.4 after China on Tuesday agreed to allow all six of the nation's carriers to operate charter flights to China during the Lunar New Year holiday that begins at the end of this month.
EVA Airways Corp (長榮航空), Taiwan's second-largest carrier, rose NT$0.10, or 0.6 percent, to NT$16.7.
China Steel Corp (中鋼), Taiwan's largest steelmaker, rose NT$1.4, or 6.7 percent, to NT$22.40. The steelmaker said it expects net income this year to grow 83 percent from last year to NT$29.2 billion.
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