TAIEX rises for 4th day as Pou Chen gains

Stocks rose for a fourth day yesterday, led by manufacturers such as Pou Chen Corp (寶成) and China Steel Corp (中鋼), after the nation's exports grew last month instead of falling as economists had forecast.

"Traditional manufacturers are benefiting from the booming overseas demand," said Reming Yu, who helps manages NT$144.6 billion (US$4 billion) at Prudential Securities Investment Trust Co (保誠投信).

The TAIEX rose 5.26, or 0.1 percent, to 4,832.30. The index reached its highest level since Feb. 7. About three stocks gained for every two that fell. June futures on the benchmark rose 21, or 0.4 percent, to 4,765.

Exports increased 2.1 percent last month. While the pace was the slowest since October, the gain surpassed an average 0.7 percent decline predicted by economists.

Pou Chen, a maker of sports shoes for Nike Inc, climbed NT$2.20, or 6.8 percent, to NT$34.40.

China Steel, Taiwan's largest steelmaker, rose NT$0.20, or 0.9 percent, to NT$22.70.

Taiwan Cellular Corp (台灣大哥大), the nation's biggest mobile-phone service provider, rose NT$1.70, or 6.9 percent, to NT$26.50 after it elected Fubon Financial Holding Co (富邦金控) co-chief executive officer Daniel Tsai (蔡明忠) as its acting chairman, replacing Jack Sun (孫道存).

The management reshuffle will give Fubon control of the mobile-phone service company.

Fubon fell NT$0.10, or 0.4 percent, to NT$27.50.

Chang Hwa Commercial Bank (彰化銀行) fell NT$0.10, or 0.7 percent, to NT$15.10.

The bank said after the market closed yesterday that it agreed to sell NT$2.09 billion worth of bad loans to Taiwan Asset Management Corp (台灣金聯) as part of its plan this year to write off NT$20 billion of loans. Chang Hwa last year sold a record NT$45.9 billion of non- performing loans.