Stocks gained yesterday, lifting the benchmark index to its highest in nearly 14 months.
Computer-related companies such as Taiwan Semiconductor Manufacturing Co (TSMC,
Phoenixtec Power Co (
The TAIEX added 51.99, or 1 percent, to 5,488.74, its highest close since June 19. The index gained 4.9 percent over the week, its biggest gain since the week ended July 5. Index futures expiring in August gained 0.4 percent to 5,490. About two stocks gained for every one that fell.
About 5 billion shares changed hands. The value of trading was NT$121.2 billion (US$3.5 billion), 21 percent above the three-month daily average.
"The computer industry has shown clear signs of a recovery," said Phil Chen, who manages Grand Cathay Securities Investment Trust Co's (大華投信) US$46 million High-Tech Fund.
"Strong server demand showed businesses are in spending mode again," he said.
"Foreign investors likely continued to buy tech stocks" given that chipmaker stocks were higher yesterday, said Tu Jin-lung (
Chipmakers are among foreign investors' favorite investments.
TSMC gained NT$1.50, or 2.5 percent, to NT$61, while rival United Microelectronics Corp (聯電) rose 0.4 percent to NT$24.60.
Semiconductor stocks were also boosted after Hans Mosesmann, an analyst at SoundView Technology Group, said Texas Instruments Inc will benefit from a recovery in the industry.
* TSMC gained 2.5 percent after some investors said a jump in profits at Dell Inc showed the industry was recovering.
* Phoenixtec Power, the nation's largest maker of UPS systems, jumped 6.8 percent.
* Powercom, which exports UPS systems to the US, rose 6.9 percent.
He said Texas Instru-ments is the best stock to own to take advantage of a recovering semiconductor industry. Moses-mann raised the shares to "outperform" from "neutral."
Dell said shipments of servers, computers that run corporate networks, Web sites and e-mail, rose 27 percent in the period. Second-quarter profit rose 24 percent.
Phoenixtec Power, the nation's largest maker of UPS systems, gained NT$2.60, or 6.8 percent to NT$41.10.
Powercom, which exports UPS systems to the US, rose NT$3.50, or 6.9 percent, to NT$54.50.
"Some investors can see opportunities even in ruins," said Eddie Chiu, who manages the equivalent of US$116 million for First Global Investment Trust Co's (
"The power outage will remind people of the need for UPS systems," he said.
Tu said the massive blackouts in North America encouraged some domestic institutional investors to take profits.
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