Fubon Financial leads fourth day of stock gains

Stocks rose for a fourth day yesterday.

Fubon Financial Holding Co (富邦金控) gained on optimism a government plan to offer subsidized mortgages to home buyers will spur lending.

The TAIEX added 40.23, or 0.7 percent, to 5,686.85. The Taiwan Futures Index for September delivery rose 0.7 percent to 5,653. About eight stocks gained for every seven that declined.

About 4.4 billion shares changed hands and the value of trading was NT$94.1 billion (US$2.8 billion).

The government is offering NT$280 billion (US$8.185 billion) of subsidized mortgages, seeking to boost the property market, the central bank said in a statement late Friday.

"The government is stepping up efforts to boost the economy by encouraging people and companies to borrow," said Celine Chiang, who manages the US$16 million Chronicle Fund for Polaris International Securities Investment Trust Co (寶來投信).

"Lenders will benefit by playing the key role in government subsidized loan packages," she said.

Fubon Financial Holding, the nation's largest non-life insurer, rose NT$0.80, or 2.8 percent, to NT$29.70. Cathay Financial Holding Co (國泰金控), the country's biggest financial services company, added NT$0.60, or 1.5 percent, to NT41.50.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電) advanced after Intel Corp raised its third-quarter sales forecast to a range between US$7.3 billion and US$7.8 billion, up from a previous forecast of US$6.9 billion to US$7.5 billion.

TSMC, the world's largest maker of computer chips on a subcontracting basis, rose NT$0.50, or 0.8 percent, to NT$64.50. Rival UMC rose NT$1.40, or 5.4 percent, to NT$27.20.