Wed, Dec 24, 2003 - Page 11 News List

Fears about relations with China limit TAIEX gains

AGENCIES , TAIPEI

Stocks gained for the second day, but light trading and concerns over Taiwan's relations with China capped gains. Compal Electronics Inc (仁寶電腦), the nation's second-largest maker of notebook computers, rose after a Chinese-language newspaper said its sales will double in two years.

"Investors don't dare to hold too many stocks," given Taiwan's relations with China could take a turn for the worse, said Alex Yang, a senior vice president at SinoPac Capital Management (建華投顧).

The TAIEX added 10.40, or 0.2 percent, to 5,845.51. But decliners outnumbered gainers 392 to 323 with 223 stock unchanged.

Trading totaled NT$50.37 billion (US$1.47 billion), the lowest level since Dec. 8, when turnover amounted to NT$47.50 billion (US$1.39 billion). The benchmark index traded within a range of 30.4 points, the fourth-narrowest spread this year and the smallest range since the 26.99 point difference on Dec. 8.

The Taiwan futures index was unchanged at 5,838.

Analysts said the electronics sector is likely to see a pick up in interest only toward the end of February, when the IT industry starts to pull out of a traditional, seasonally weak first quarter.

Compal Electronics rose NT$0.50, or 1.1 percent, to NT$47.

Sales will reach NT$230 billion (US$6.8 billion) this year, the newspaper reported, citing the company's chairman, Rock Hsu (許勝雄).

Taiwan Semiconductor Manufacturing Co (台積電) closed up NT$0.50 at NT$62.00, while United Microelectronics Corp (聯電) was down NT$0.10 at NT$29.10.

Macronix was limit-up NT$0.50 at NT$7.65 thanks to a solid rebound after a sell-off by foreign investors Monday.

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