TAIEX gains are paced by Taiwan Semiconductor

Stocks rose, lifting the TAIEX to its biggest gain in six weeks.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led gains after Barron's cited the company's chief executive, Morris Chang (張忠謀), as saying demand for its products is recovering. The TAIEX added 75.88, or 1.3 percent, to reach 5835.11.

More than three stocks rose for every one that declined. The Taiwan futures index rose 0.7 percent to 5838.

Barron's cited Chang as saying demand for chips used in computers, communications and other products is recovering.

TSMC may trade at as much as six times the company's book value, which would translate into a share price of NT$84.60, Cheng Ming-kai (鄭明凱), an analyst at CLSA Asia Pacific Markets in Taiwan, told Barron's.

"Demand for computer chips is improving," said Mike Shiao, a fund manager at Invesco Taiwan Ltd (景順投信). "Investors will have to start adjusting Taiwan Semiconductor's valuation according to 2004's earnings outlook."

TSMC gained NT$1.50, or 2.5 percent, to NT$61.50.

China Development Financial Holding Corp (中華開發金控), Taiwan's fifth-largest financial company by market value, gained NT$.80, or 5.3 percent, to NT$15.90 after directors decided to move forward the company's shareholders meeting to April in order to elect a new board.

Investors interested in bidding for a board seat will have until Feb. 6 to accumulate shares for the meeting. The new schedule may prompt investors seeking to take part in managing the lender to rush purchases of shares, a Chinese-language newspaper reported.