TAIEX keeps advancing, tracking New York stocks

Shares ended at a new 41-month closing high yesterday, tracking strong gains in US stocks overnight.

Technology issues led the advance, with Taiwan Semiconductor Manufacturing Corp (TSMC,台積電) climbing after researcher Gartner Inc said worldwide semiconductor sales will rise 23 percent this year, the biggest increase since 2000.

"Demand for consumer electronic goods will be translated into orders for more semiconductor chips, benefiting makers like TSMC," said Tom Fu, a fund manager at Prudential Securities Investment Trust Co (保誠投信).

The TAIEX advanced 48.97, or 0.7 percent, to 6,693.25. It rose 0.8 percent on Wednesday.

Taiex Futures for February delivery added 0.8 percent to 6,735.

About the same number of stocks gained and declined.

TSMC rose 3.3 percent to NT$63.50. Rival United Microelectronics Corp (聯電) gained 0.7 percent to NT$30.30.

BenQ Corp (明基電通), a maker of electronic products in China, gained 4.4 percent to NT$45.60, buoyed by the positive outlook for the company's earnings for this year, analysts said.

China Development Financial Holding Corp (中華開發金控) gained 2.2 percent to NT$18.60. Company chairwoman Diana Chen (陳敏薰) has refused to participate in a proposal by the Ministry of Finance to allocate seats on the company's board according to the size of shareholders' stakes.

Formosa Plastics Corp (台塑) rose 0.9 percent to NT$54. The company expects profit this year to expand to NT$18.8 billion (US$566 million) as demand for the chemicals that are used to make plastic bottles, pipes and other goods increase.