Tue, Jul 15, 2003 - Page 11 News List

TAIEX sees Quanta, TSMC advance

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Stocks gained yesterday, snapping a three-day decline. Computer-related companies such as Quanta Computer Inc (廣達電腦) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose on optimism of higher demand for personal computers.

Eric Gomberg, an analyst at Thomas Weisel Partners, raised his profit and sales estimates for Intel Corp, the world's largest computer chipmaker by sales, for the rest of this year and next year in anticipation of increasing demand for computer products.

"The computer industry has showed good recovery," said Celine Chiang (江宜津), who manages the equivalent of US$16 million in Polaris International Securities Investment Trust Co's (寶來投信) Chronicle Fund.

"The recovery will propel the market to move higher," she said.

The TAIEX rose 109.88, or 2.1 percent, to 5,349.94. About four stocks gained for every one that declined. July futures on the index rose 2.8 percent to 5,412.

About 6.1 billion shares changed hands, 57 percent above the average trading in the past three months. The value of trading was NT$143.1 billion (US$4.2 billion), 77 percent above the three-month daily average.

Stocks also rose following the legislature's shelving last week a proposed law that would allow for the nation's first referendum, which may anger China.

Quanta, the county's largest notebook computer maker, rose NT$3, or 3.8 percent, to NT$82.

TSMC, the world's largest maker of computer chips on a subcontracting basis for clients such as Intel, gained NT$2, or 3.5 percent, to NT$59.50. Rival United Microelectronics Corp (聯電) was up NT$0.60 at NT$26.50 ahead of going ex-dividend for 4.01 percent in stock Tuesday.

Macronix International Co (旺宏電子), the nation's biggest maker of memory chips for electronic games, rose NT$0.60, or 6.6 percent, to NT$9.75. Macronix may invest tens of millions of dollars more in Tower Semiconductor Ltd, an Israeli maker of chips to order, Globes newspaper said, citing Macronix's president Miin Wu (吳敏求). Macronix has already invested US$75 million in a plant of Migdal Ha'emek, Israel-based Tower Semiconductor, the paper said.

Wu said Macronix has invested a total of US$100 million in Israeli companies, the paper added.

Chunghwa Telecom Co (中華電信) was flat at 51.00 on 5.87 million shares in a muted response to the Ministry of Transportation and Communications decision to delay its auction of 200 million Chunghwa Telecom shares to July 17 from July 15 due to US regulatory issues.

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