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Stocks rise for fourth day as TSMC shows the way

Stocks rallied yesterday, led by exporters such as Taiwan Semicon-ductor Manufacturing Co (TSMC, 台積電) and rival United Microelec-tronics Corp (UMC, 聯電), after a US survey showed that business is picking up for manufacturers in New York.

The US report "helps bolster optimism and capital inflows," said Belinda Yu, who helps manage the equivalent of US$2.2 billion for Jih Sun Securities Investment Trust Co (日盛投信) in Taipei.

The TAIEX climbed 80.83 points, or 1.7 percent, to 4,973.19, extending gains this quarter to 15 percent. About six stocks rose for every five that fell. June futures on the index added 2.7 percent to 5,037.

Shares worth NT$124 billion (US$3.6 billion) changed hands, the highest since Jan. 25. About 6 billion shares traded, about double the three-month daily average.

Foreign investors bought more shares than they sold yesterday for a fourth straight session, adding NT$1.3 billion net worth of stock, according to Bloomberg data. Overseas investors have been net buyers of stocks for 10 weeks.

TSMC climbed NT$2, or 3.6 percent, to NT$58. UMC gained NT$0.80, or 3.5 percent, to NT$23.80.

TSMC, Fubon Financial Holding Co (富邦金控) and Nan Ya Plastics Corp (南亞塑膠), three of the 14 Taiwanese stocks added to a new Standard & Poor's Asian index, may benefit from increased buying by money managers tracking the index, some investors said.

S&P said in a statement on June 10 that the new S&P Asia 50 index will take effect beginning June 23.

Fubon climbed NT$0.70, or 2.5 percent, to NT$28.40. Nan Ya Plastics rose NT$1, or 2.6 percent, to NT$39.

CMC Magnetics Corp (中環) gained NT$0.90, or 3.8 percent, to NT$24.60. The compact disc maker expects to raise disc prices in the fourth quarter as demand exceeds supply, a Chinese-language newspaper reported, citing CMC chairman Bob Wong (翁明顯).
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