Stocks rose yesterday, with the key index climbing to its highest in 14 months.
Taiwan Semiconductor Manufacturing Co (TSMC,
Asustek Computer Inc (華碩電腦) dropped on concern its 67 percent rally this year may have outpaced its profit growth. Asustek will report its first-half profit this month.
"Overseas demand has certainly accelerated, which is good for Taiwan's exporters," said Celine Chiang, who manages the US$16 million Chronicle Fund for Polaris International Securities Investment Trust Co (
"Investors are cautious about companies like Asustek Computer ahead of their first-half reports, especially when some of them have gained so much," she said.
The TAIEX added 28.06, or 0.5 percent, to 5,516.80, its highest close since June 18 last year. The turnover was NT$101.58 billion (US$2.94 billion), with 456 issues finishing higher, 222 lower and 98 unchanged.
Index futures expiring this month gained 0.9 percent to 5,539.
TSMC, the world's largest maker of computer chips on a subcontracting basis, rose NT$0.50, or 0.8 percent, to NT$61.50.
Asustek, the nation's largest maker of the boards that hold the chips that run computers, shed NT$1.50, or 1.6 percent, to NT$90.50.
Construction stocks were the best performers, surging 5.6 percent as a whole.
"Funds are still in the market, but their buying activity has turned to traditional names as the rally in techs comes to a halt," said Tu Jin-lung (杜金龍), vice president at Grand Cathay Securities Corp (大華證券).
RSS