TSMC leads gainers as exports boost the bourse

Stocks gained, paced by exporters such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電), after the government said the nation's export orders rose at the fastest pace in four months.

The TAIEX advanced 94.23, or 2.1 percent, to close at 4,526.69. About seven stocks gained for each one that declined. The MSCI Taiwan futures for February delivery in Singapore rose 2.5 percent to 191.40. The Taiwan Futures Index rose 2.4 percent to 4515.

Export orders rose 14.99 percent from a year earlier to US$13.02 billion in January after a 14.04 percent gain in December, the Ministry of Economic Affairs reported last Thursday.

"Overseas demand has showed some recovery," said Celine Chiang (江宜津), who manages the NT$500 million (US$14 million) Chronicle 2001 Fund at Polaris International Securities Investment Trust Co (寶來投信).

TSMC rose NT$2, or 4.8 percent, to NT$44. UMC gained NT$0.40, to NT$20.10.

Shares worth NT$45.8 billion changed hands in the market, 43 percent lower than the daily average in the past three months.

China Steel Corp (中鋼) was unchanged at NT$21.60 after rising as much as 1.9 percent. The company raised its domestic steel product prices to reflect increases in international steel prices. Last Thursday China Steel said demand from China pushed up international steel prices, which benefited steelmakers' earnings domestically. China Steel's fourth-quarter profit surged almost four times after the company raised prices.

Chi Mei Optoelectronics Corp (奇美光電) rose NT$0.30, or 1 percent, to NT$30.00 after it sold US$225 million of bonds convertible into its stock last week to invest in new factories and machinery.

MediaTek Inc (聯發科技), the largest chip designer in the nation, rose NT$16, or 6.3 percent, to NT$272. MediaTek will pay dividends in cash instead of stock this year because earnings will not be as good as in earlier years, a local newspaper reported on Saturday, citing company officials. The company will distribute about 50 percent of dividends this year as cash rather than stock to avoid diluting earnings per share, the report said, citing MediaTek spokesman Yu Ming-to (喻銘鐸).