TSMC losses cancel out gains by AU Optronics

The TAIEX closed little changed yesterday. AU Optronics Corp (友達光電) extended Tuesday's gain after BNP Paribas SA raised its earnings estimates for last year for the nation's liquid crystal display makers by 23 percent.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電) dropped on concern the appreciation of the local currency to a one-and-a half-year high against the dollar will erode the value of their overseas sales.

The TAIEX added 1.62 points to 6,386.25, extending a 1.8 percent gain from Tuesday. About two stocks rose for every one that fell. The Taiwan Futures Index shed 0.3 percent 6,367.

AU Optronics, the country's largest maker of flat-panel displays for personal computers, rose NT$1.10, or 2.3 percent, to NT$48.80. Chi Mei Optoelectronics Corp (奇美電子), the nation's second largest, gained NT$1.40, or 3.3 percent, to NT$43.60.

BNP Paribas cited better profit margins and improved product prices as the reasons for boosting its estimate. Overseas investors bought a net 118 million AU Optronics shares on Tuesday, according to the Taiwan Stock Exchange.

TSMC, the world's largest maker of computer chips on a subcontracting basis, shed NT$1, or 1.5 percent, to NT$67.50. It relies on the US for three-quarters of its sales.

United Microelectronics, its smaller rival, fell NT$0.10, or 0.3 percent, to NT$31.60.

About 7 billion shares valued at NT$151.6 billion (US$4.5 billion) traded, about 80 percent more than the three-month daily average.

Charoen Pokphand Enterprise (Taiwan) Co, a chicken farm unit of Thailand's Charoen Pokphand Food Pcl, gained NT$0.40, or 7 percent, to NT$6.15.

The company received orders for the first time from KFC stores in Hong Kong after supplies from other nations were disrupted, a newspaper reported.