Quanta, Acer lead gainers as overseas demand rises

Stocks gained yesterday, led by Quanta Computer Inc (廣達電腦) and Acer Inc, as consumers in China and the US bought more computers, flat-panel displays and cellphones last month than a year ago.

Export orders, indicative of shipments in one to three months, jumped 10.7 percent last month from a year ago, government figures showed.

The TAIEX added 38.35, or 0.7 percent, to 5,722.36. More than three stocks gained for every two that declined. The futures contract for September delivery rose 0.5 percent to 5,745.

About 3.8 billion shares changed hands, or 16 percent below the average daily volume in the past three months. Shares worth NT$90.5 billion (US$2.7 billion) were traded.

"Taiwan's economy is doing well, which should be reflected in stock prices," said Yu Reming, a fund manager at Prudential Securities Investment Trust Co (保誠投信).

Quanta Computer rose NT$1.50, or 1.8 percent, to NT$86. Acer Inrose NT$1.50, or 3.2 percent, to NT$48.20.

Chunghwa Picture Tubes Ltd (中華映管) shed NT$0.30, or 1.8 percent, to NT$16.70. The company said it may post a third-quarter loss because of write-offs for older factories that make glass tube-based monitors. It said it expects to post a pretax loss of NT$648 million this year, revising an earlier forecast of a NT$3.8 billion loss.

Mega Financial Holdings Co (兆豐金控) gained NT$0.20, or 1.1 percent, to NT$18.10. It sold US$90 million of bonds convertible into its shares, increasing its sale of such debt to US$690 million.