TAIEX gains again, led by China Development

Stocks gained for a four day. China Development Financial Holding Corp (中華開發金控) rose after the nation's fifth-biggest financial services company by market value said it returned to profit in the third quarter.

United Microelectronics Corp (UMC, 聯電), the world's second-largest supplier of made-to-order semiconductors, dropped as some investors judged its 58 percent gain this year already reflects its improved prospects.

The TAIEX added 12.26, or 0.2 percent, to 6,108.13, its highest since April 29 last year. The index has gained 3.2 percent this week and has surged 37 percent this year. About three stocks gained for every two that declined. The futures index shed 0.4 percent to 6134.

About 4.4 billion shares changed hands, 5 percent above the average daily trading in the past three months. Shares worth NT$91 billion traded, 4.5 percent below the three-month daily average.

China Development advanced NT$0.25, or 1.7 percent, to NT$14.80. Its loss narrowed to NT$12.9 billion (US$380 million) at the end of last month, from NT$14.7 billion at the end of June, after it booked investment gains in the third quarter.

UMC shed NT$0.40, or 1.2 percent, to NT$31.80. Third-quarter profit tripled to NT$4.2 billion as demand rose and the company booked gains from selling investments. Profit included NT$2 billion of non-operating income.

"While companies like UMC and Taiwan Semiconductor Manufacturing Co (台積電) have reported impressive profit growth in the third quarter, their stock prices have outperformed the benchmark index too much too fast," said Mike Shiao, a fund manager at Invesco Taiwan Ltd (景順投信).

Advanced Semiconductor Engineering Inc (日月光) shed NT$0.40, or 1.2 percent, to NT$32.30. Advanced Semiconductor said its third-quarter profit almost doubled to NT$582.9 million from NT$314.6 million from a year ago.