Stocks climb higher on back of reform optimism

The TAIEX rose for a fourth day yesterday, led by Cathay Financial Holding Co (國泰金控) and Fubon Financial Holding Co (富邦金控) on optimism the legislature will pass a financial industry reform bill this quarter.

Nanya Technology Corp (南亞科技), Winbond Electronics Corp (華邦電子) and other computer-memory chipmakers declined after prices of their key product fell.

The TAIEX added 5.48, or 0.1 percent, to 5,856.68. About three stocks fell for every two that rose. The futures contract for October delivery rose 0.5 percent to 5,855.

About 4.9 billion shares changed hands, or 13 percent above the average daily volume in the past three months. Shares worth NT$90.6 billion were traded.

Cathay Financial Holding, the nation's largest financial company by market value, rose NT$1.40, or 3 percent, to NT$48.10.

Fubon Financial Holding, the nation's largest non-life insurer, rose NT$0.90, or 2.6 percent, to NT$35.50.

The government is proposing laws to quadruple the size of a fund created to help banks dispose of about NT$1.2 trillion (US$35 billion) of bad loans.

AU Optronics Corp (友達光電), the world's No. 3 maker of flat-panel displays for personal computers, rose NT$0.10, or 0.2 percent, to NT$45 after it said late Monday that last month's sales rose 76 percent to NT$9.8 billion from NT$5.5 billion a year earlier.

MediaTek Inc (聯發科技), the world's largest supplier of semiconductors for DVD players, gained NT$3, or 0.8 percent, to NT$386 after its last month's sales rose 49 percent from a year earlier.

The company said sales last month rose to NT$4.3 billion (US$128 million) from NT$2.9 billion.