Chunghwa, Mega gain as TAIEX hits 17-month high

The TAIEX rose to almost a 17-month high yesterday after Chunghwa Telecom Co (中華電信) and Quanta Computer Inc (廣達電腦) reported higher sales figures last month.

Mega Financial Holding Co (兆豐金控) and Cathay Financial Holding Co (國泰金控) gained after a Chinese-language newspaper said the companies may raise their profit forecasts for this year.

"Companies that showed strong profit and sales reports will be favored by investors," said Phil Chen, who manages the US$46 million High-Tech Fund at Grand Cathay Securities Investment Trust Co (大華投信).

The TAIEX rose 48.08, or 0.8 percent, to 5,869.88, its highest since May 15 last year. For the week, the index rose 2.1 percent. About seven stocks gained for every two that declined.

About 5.7 billion shares changed hands, 32 percent above the three-month daily average.

The futures contract for October delivery rose 1 percent to 5,894.

Chunghwa Telecom gained NT$1, or 2.1 percent, to NT$49.80. The company said last month's sales rose 1.4 percent to NT$15.5 billion (US$458 million) from NT$15.2 billion the same month a year ago.

Quanta Computer rose NT$2, or 2.3 percent, to NT$87.50. Quanta said sales last month nearly quadrupled from a year earlier.

Cathay Financial, the country's biggest financial services company, advanced NT$1.30, or 2.7 percent, to NT$48.80.

Mega Financial, the nation's third-largest financial company by market value, rose NT$0.50, or 2.6 percent, to NT$19.60.

Chi Mei Optoelectronics Corp (奇美電子), the nation's second biggest maker of flat-panel displays used in computers, rose NT$0.70, or 1.6 percent, to NT$43.50.

Taiwan Semiconductor Manu-facturing Co (台積電) dropped NT$0.50, or 0.7 percent, to NT$69 after Royal Philips Electronics NV said in an e-mail statement on Wednesday that it may sell part of its stake to raise as much as US$1.03 billion to reduce debt.

The Taiwan Stock Exchange will be closed today for the Double Ten Day national holiday.