Bargain-hunting limits TAIEX rise; construction jumps

Stocks ended slightly higher yesterday on bargain hunting, with construction stocks leading gains on improving property demand, analysts said.

The TAIEX added 4.2, or 0.1 percent, to 6,879.11, with a turnover of NT$129.49 billion (US$3.88 billion). The index dropped as much as 1 percent in intra-day trading. About the same number of stocks rose as fell. Taiex futures for March delivery shed 0.1 percent to 6,922.

Construction stocks surged 4.2 percent overall, outpacing all other sectors.

Alan Tseng, an analyst at Capital Securities Corp (群益證券), said the bourse was able to recoup early losses because investors sought bargains as the key index approached the short-term support level of 6,800 points.

Shares of Kuoyang Construction Co (國揚建設) soared by the 7 percent daily limit to NT$13, while Hung Sheng Construction Ltd (宏盛建設) rose 6.9 percent to NT$23.2.

Steel makers also benefited from the rise in property demand. Yieh Loong Steel Co (燁隆) climbed 2.8 percent to NT$18.4, while Chia I Industrial Co (嘉益) surged 6.4 percent. But China Steel Corp (中鋼) fell 0.3 percent to NT$34.10.

Computer-memory chipmakers saw their shares boosted by stabilizing dynamic random access memory prices, analysts said.

Nanya Technology Corp (南亞科技), the nation's largest computer memory-chipmaker, climbed 4.8 percent to NT$26.20, and Winbond Electronics Corp (華邦電子) rose 2.2 percent to NT$18.50.

Rival Mosel Vitelic Inc (茂矽) rose 7 percent to NT$3.98 on news that the company plans to completely repay next month a NT$1.6 billion (US$48 million) bond it defaulted on last June.