Stocks gained yesterday. Pou Chen Corp (寶成) and Asustek Computer Inc (華碩電腦) rose on optimism the possible appreciation of the Chinese yuan will boost the value of their Chinese assets and proceeds.
China has drawn pressure from trading partners to allow its currency, which is pegged to the US dollar, to appreciate.
Chunghwa Telecom Co (中華 電信) fell after Taiwan Cellular Corp (台灣大哥大) chairman Daniel Tsai (蔡明忠) said he plans to sell off part of the company's stake in Chung-
hwa bought in December.
Chunghwa Telecom fell NT$0.30, or 0.6 percent, to NT$47.70. Taiwan Cellular was unchanged at NT$26.
The TAIEX rose 11.16, or 0.2 percent, to 5,318.34. The index gained 9.2 percent this month, its third monthly advance. About five stocks declined for every four that gained. August futures on the benchmark fell rose 0.4 percent to 5,330.
About 3.8 billion shares changed hands, 12 percent below the average trading in the past three months. The value of trading was NT$85 billion (US$2.5 billion), 8 percent below the three-month daily average.
Shoemaker Pou Chen, whose clients include Nike Inc, rose by its 7 percent daily limit to NT$37.60.
Asustek Computer rose NT$3.50, or 3.2 percent, to NT$112.
"Some investors are favoring so-called China plays because of growing anticipation of the appreciation of the Chinese currency," said Edward Hsieh, a fund manager at First Global Investment Trust Co (元大投信).
Chi Mei Optoelectronics Corp (奇美電子) was unchanged at NT$34 after rising as much as 0.9 percent. It said it posted net income for the three months ended June 30, ending two straight quar-ters of losses.
Powerchip Semiconductor Corp (力晶半導體) dropped NT$0.40, or 2.3 percent, to NT$16.90. Powerchip reported a loss of NT$2.9 billion in the first half of this year.
United Microelectronics Corp (聯電) fell NT$0.10, or 0.4 percent, to NT$24.50. It said net income in the three months ended June 30 fell 39 percent from a year ago. The company said it expects shipments to fall by a single-digit percentage this quarter from the second.
Taiwan Semiconductor Manu-facturing Co's (TSMC,台積電) closed up NT$2, or 3.5 percent, to NT$59.
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