Computer makers lead rise in TAIEX

The TAIEX rose, led by computer makers such as Quanta Computer Inc (廣達電腦) and Acer Inc, after International Business Machines Corp (IBM) reported quarterly sales that beat some analysts' estimates.

"The latest profit report by IBM helped cheer up investor confidence in electronic makers,'' said Eddie Chiu, who manages the US$115 million Hitech Fund at First Global Investment Trust Co (元大投信).

"The rally will be limited, however, because IBM profit was propelled by strong demand for its software while its hardware sales declined,'' he said.

The TAIEX gained 27.78, or 0.6 percent, to 4,487.59. About two stocks gained for every one that declined.

Quanta Computer, the nation's largest notebook computer maker, rose NT$1, or 1.5 percent, to NT$66.50. Acer rose NT$0.20, or 0.6 percent, to NT$33. IBM is a major customer of Quanta and Acer's manufacturing unit Wistron Corp (緯創資通).

IBM, the world's largest seller of computers and related services, said first-quarter sales rose 11 percent to US$20.1 billion. Analysts on average had estimated the company would have sales of US$19.9 billion, according to Thomson Financial.

IBM said its hardware sales dropped 1 percent to US$5.8 billion as sales of mainframe computers declined. Software revenue increased 8 percent to US$3.1 billion.

Chunghwa Telecom Co (中華電信) fell NT$0.50, or 1 percent, to NT$50. The government yesterday sold 3.7 percent of the 500 million shares of Chunghwa Telecom on offer at NT$50 a share. The auction will continue until tomorrow.

Fubon Financial Holding Co (富邦金控) rose to NT$27.70. The stock closed unchanged at NT$27 after the nation's second-largest financial services company said earnings in the first quarter reached almost NT$0.50 a share, without giving specific or comparative details.