Fri, May 23, 2003 - Page 11 News List

Quanta, Asustek lead rise

BLOOMBERG , TAIPEI

Stocks rose, led by the nation's biggest companies such as Quanta Computer Inc (廣達電腦) and Asustek Computer Inc (華碩電腦), as government funds bought shares to help boost prices, some investors said.

The TAIEX rose 54.66, or 1.3 percent, to 4,271.30. It dropped as much as 0.8 percent in early trading after the World Health Organization said travelers should avoid the country to contain the spread of SARS.

There were expectations that government-related funds and major shareholders might lend support to the bourse.

"Government funds appeared to be in the market to keep the index from falling," said Hebbe Lin, who manages US$20 million in assets at International Investment Trust Co (國際投信).

"Recent feeble trading volume made it easier to manipulate the market," Lin said.

The government can intervene in the stock market through four government funds: the Labor Retirement Fund, the Postal Savings Fund, the Civil Servant Pension Fund and the Labor Insurance Fund.

The value of trading slowed to NT$23.7 billion (US$683 million) on Monday, its lowest since October 2001. About NT$38.6 billion in shares changed hands yester-day, 17 percent lower than the average daily volume in the past three months.

Asustek, the world's largest maker of boards that connect the chips in personal computers, climbed NT$2.5, or 3.5 percent, to NT$74.

Quanta, the nation's largest notebook computer maker, rose NT1.50, or 2.4 percent, to NT$65.

Hon Hai Precision Industry Co (鴻海精密) rose NT$1, or 0.9 percent, to NT$112.50. Hon Hai on Wednesday announced to invest NT$35 billion in its first flat-panel display plant, Innolux Display Corp (群創光電), for cellphones, personal computers and other products, the company told the Taipei Times on condition of anonymity.

Innolux hopes to become the world's biggest supplier of flat-panel screens for mobile phones by 2006, the company said.

Quanta Display Inc (廣輝電子), a unit of Quanta Computer, rose NT$0.05, or 0.5 percent, to NT$10.80.

Quanta Display said it plans to sell 1 billion new shares to domestic and overseas investors. The sale would raise NT$10.75 billion based on Quanta Display's closing share price on Wednesday. Quanta Display is a flat-panel display venture owned by Japan's Sharp Corp and Quanta.

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