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Raw-material makers lead gains as BenQ declines

Stocks rose for a third day, paced by China Steel Corp (中鋼), Nan Ya Plastics Corp (南亞塑膠) and other raw-materials makers, on optimism demand from China will grow as concern about the spread of SARS eases.

BenQ Corp (明基電通), Quanta Computer Inc (廣達電腦) and other computer-related exporters fell after a US consumer sentiment report suggested demand from the nation's second-biggest export market after China, won't pick up.

The TAIEX added 10.46, or 0.2 percent, to 4,892.36. It climbed as much as 1.1 percent in earlier trading. About two stocks gained for every one that fell.

The value of trade was NT$91 billion (US$2.6 billion), 59 percent higher than the daily average in the past three months. June futures on the index added 0.3 percent to 4,906.

China Steel climbed NT$1.20, or 5.2 percent, to NT$24.20. The company said it has room to raise its third-quarter export prices for some of its products after Chinese users pared inventory, according to a local newspaper report.

Janet Sheng, an equity analyst at KGI Securities Co (中信證券), said there are signs that steel prices, which were softening in the past few months, have hit a bottom.

Nan Ya Plastics added NT$0.40, or 1.1 percent, to NT$38. Makers of polyester chemicals may raise prices as demand grows in China, another local newspaper reported, citing unidentified industry officials.

"SARS is not a fundamental issue as economic growth in China will resume," said Richard Kao, who helps manage the equivalent of US$2.9 billion of assets under ABN Amro Asset Management Taiwan Ltd in Taipei.

Quanta Computer shed NT$1.50, or 2 percent, to NT$74.50. The company declined comment on reports it secured an order from Dell Computer for 2 million Latitude D600 notebook personal computers built on Intel's Centrino platform, citing its confidentiality agreement with clients.

Nanya Technology Corp (南亞科技) dropped NT$1.40, or 5.2 percent, to NT$25.50. The spot price of its key computer-memory-chip product fell Friday for the first time since May 28, according to Dramexchange.com, a Taiwan-based marketplace for chipmakers.
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