Wed, Jul 23, 2003 - Page 11 News List

Stocks gain, led by Nanya Technology, AU Optronics

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Stocks gained yesterday, snapping a three-day decline, led by computer memory-chip makers such as Nanya Technology Corp (南亞科技) and Winbond Electronics Corp (華邦電子), on optimism rising product prices will boost their profits.

The TAIEX added 41.71, or 0.8 percent, to 5,261.01. About six stocks gained for every five that declined. July futures on the index rose 1 percent to 5,293.

About 4.1 billion shares changed hands, 0.3 percent above the average trading in the past three months. The value of trading was NT$87.2 billion (US$2.5 billion), 0.5 percent above the three-month daily average.

Gains for the chipmakers came on reports of price rises by more than 13 percent for advanced chip products from South Korean chip manufacturer Samsung Electronics Co.

The spot price of the so-called double-data-rate chip that has 256 megabits of memory and exchanges data at a speed of 266 megahertz reached US$4.60 per chip, according to Dramexchange.com, a Taiwan-based marketplace for chipmakers. The price has risen for more than three weeks.

"Investors are still betting computer replacements will boost demand for memory chips and other related products," said Phil Chen (陳憲志), who manages Grand Cathay Securities Investment Trust Co's (大華投信) US$46 million High-Tech Fund.

Nanya Technology, the nation's largest computer memory-chip maker, rose NT$1.70, or 6.5 percent, to NT$27.90. Winbond Electronics, Nanya's smaller rival, gained NT$1.40, or 7 percent, to NT$21.40.

Taiwan Semiconductor Manufacturing Co (台積電) closed down NT$0.50 to NT$56.50 in line with the overnight decline of its American depository receipts (ADRs), amid uncertainty ahead of the release of its second-quarter earnings tomorrow.

United Microelectronics Corp (聯電) was up NT$0.50 at NT$24.50, outperforming its weaker ADRs.

Other computer-related stocks such as Compal Electronics Inc (仁寶電腦) and AU Optronics Corp (友達光電) also gained on optimism demand will improve as more people replace obsolete personal computers.

Compal, the country's second-largest notebook computer maker, rose NT$3.50, or 7 percent, to NT$53.50. AU Optronics, the nation's largest maker of computer flat displays, gained NT$0.40, or 1.3 percent, to NT$31.30.

Acer Inc rose NT$1.10, or 2.4 percent, to NT$47.60 after Nomura Securities Co analyst Ben Lee rated the stock a "buy" as he initiated coverage on the company.

Chunghwa Telecom Co (中華電信) gained 2 percent to NT$52.0. The state-run telecom company's chairman Hochen Tan (賀陳旦) said Monday the government still aims to privatize the phone company.

Wan Hai Lines Ltd (萬海航運) rose NT$1.80, or 5.6 percent, to NT$33.80.

Wan Hai placed an order to build two ships for US$63 million with SembCorp Marine Ltd, the ship repair unit of Singapore's third-largest diversified company.

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