AU Optronics leads TAIEX gainers as investors buy tech

Shares ended higher yesterday as investors switched out of old-economy stocks in favor of technology issues, dealers said.

The TAIEX finished 55.05 points higher, or 0.8 percent, at 6,644.28 in dealings valued at NT$147.3 billion (US$4.43 billion).

Advancing issues outnumbered decliners 476 to 300, while 192 ended the day unchanged.

Yesterday's rise came one day after the key index shed 76.66 points, its largest single day decline in point terms since Dec. 17, when the bourse fell 135.22 points to end at 5,752.01.

Technology sector shares accounted for about 56 percent of market turnover, and the subindex ended up 1.1 percent -- driven mainly by shares of liquid-crystal-display screen makers.

Shares in AU Optronics Corp (友達光電), the world's No. 3 screen maker, rose 4.8 percent to NT$54.5, partly on optimism the sector will remain strong in the second quarter.

Hannstar Display Corp (瀚宇彩晶), a smaller rival of AU, soared 6.6 percent to NT$16.1. Shares in Chunghwa Picture Tubes Ltd (中華映管), the nation's No. 3 LCD maker, also performed well, gaining 6.4 percent to NT$18.2.

Chip shares were also strong yesterday. The world's largest chip packaging and testing firm, Advanced Semiconductor Engineering Inc (日月光) added 3.6 percent to NT$37.3, while rival Siliconware Precision Industries Co (矽品) rose 2.2 percent to NT$36.7.

Chip designer Sunplus Technology Co (凌揚科技) rose 3.5 percent on continued strength in sales of optical disc drive chips and digital camera chips.

Novatek Microelectronics Corp (聯詠科技), which designs chips for LCD displays, finished up 3.4 percent at NT$138.5.