Fri, Oct 03, 2003 - Page 11 News List

Cathay Financial, United Micro lead TAIEX gainers

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Stocks rose for the first day in six yesterday, led by United Micro-electronics Corp (UMC, 聯電) and Cathay Financial Holding Co (國泰金控), on signs of improving earnings growth.

Shares also got a boost after the government scrapped a 12-year-old rule that limited investment by overseas funds in the stock market.

The TAIEX jumped 118.20, or 2.1 percent, to 5,699.86, ending a five-day, 2.5 percent drop. About six stocks gained for every one that fell.

The futures contract for October delivery added 1.6 percent to 5,720.

About 3.3 billion shares changed hands, or 25 percent below the average volume in the past three months. Shares worth NT$76.8 billion (US$2.3 billion) were traded.

Cathay United Bank (國泰銀行) hit its full-year profit forecast in just nine months, a Chinese-language newspaper reported yesterday.

Sales of UMC may have increased last month, while third-quarter sales probably rallied as much as 12 percent from the previous quarter, the paper reported.

"Preliminary signs show we can expect more good scorecards entering into the earnings season this month,"said Phil Chen, a fund manager at Grand Cathay Securities Investment Trust Co (大華投信).

Cathay Financial rose NT$0.60, or 1.4 percent, to NT$44.50.

UMC rose NT$1.50, or 5.4 percent, to NT$29.20.

Yuanta Core Pacific Securities Co (元大京華證券) surged NT$1.10, or 6 percent, to NT$19.50. The nation's largest brokerage surpassed its net income target for this year of NT$3.8 billion (US$112.5 million) with just nine months of income reported, a local newspaper said.

VIA Technologies Inc (威盛電子) gained NT$1, or 1.9 percent, to NT$53.

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