Thu, Jul 03, 2003 - Page 11 News List

Chipmakers lead TAIEX to 12-month high on order hopes

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Stocks gained yesterday, taking the index to its highest in a year. Computer-memory chipmakers such as Nanya Technology Corp (南亞科技) and ProMOS Technolo-gies Inc (茂德科技) rose on optimism demand for chips will increase in the second half.

The TAIEX gained 77.46, or 1.5 percent, to 5,095.24, its highest since July 24 last year. July futures on the index rose 2 percent to 5,140. About three stocks gained for every two that declined.

About 6.6 billion shares changed hands, 94 percent above the average daily volume in the past three months. The value of trading was NT$146.3 billion (US$4.2 billion), 113 percent above the average daily value traded in the last three months.

"Investors are betting computer replacement demand will increase this year as the massive purchase of computers around the year 2000 should start to be replaced," said Eddie Chiu, a fund manager at First Global Investment Trust Co (元大投信).

"The latest computer models have much higher demand for memory chips, creating a windfall for companies like ProMOS Technologies and Nanya Technology," he said.

Chiu counts ProMOS Technologies among his investments.

Nanya, the world's fifth-largest maker of computer-memory chips, rose NT$1.8, or 6.7 percent, to NT$28.50. ProMOS rose NT$1, or 6.7 percent, to NT$16.

Winbond Electronics Corp (華邦電子) rose NT$1.2, or 6.6 percent, to NT$19.40. Powerchip Semiconductor Corp (力晶半導體) rose NT$1.1, or 6.8 percent, to NT$17.40.

Chipmakers were also boosted by a rise in the price of the benchmark memory chip on Tuesday for the first day in six.

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