Outlook improves as jittery bourse regains confidence

Shares ended up yesterday, gaining for the sixth straight session after rises in US stocks and as investors believed the worst of the political wrangling about the disputed presidential election may be over.

Electronics shares led the gains, helped by hopes of solid March revenue and first-quarter earnings.

The TAIEX closed up 137.19 points, or 2.1 percent, to 6682.73. It was the index's highest close since March 19, the day before the presidential election, when it finished at 6815.09.

Gainers outnumbered decliners 666 to 173 with 140 stocks unchanged in trading valued at NT$150.68 billion (US$4.6 billion).

"The market should gradually climb toward the levels before the election ... The fundamentals remain good. Companies aren't receiving less orders because of the political disputes," said Michael Hsu (許派一), assistant vice president at Jih Sun Securities Investment Consulting (日盛投顧).

The electronics subindex rose almost 3 percent, led higher by soaring DRAM chip makers, as spot prices of chips rose further.

DRAM maker Nanya Technology Corp (南亞科技) surged nearly the daily limit of 7 percent to end at NT$30.20. Competitor Winbond Electronics Corp (華邦電子) rose 5.6 percent to NT$18.90.

Chip stocks performed well, following gains in their American Depositary Receipts on Friday.

Taiwan Semiconductor Manu-facturing Co (TSMC,台積電), the world's largest chip foundry, rose 4.2 percent to NT$62, after a 2-percent rise in its ADRs. TSMC's competitor, United Microelectronics Corp (UMC, 聯電), rallied by almost the daily limit to end at NT$31.50, following a 3.5 percent gain in its ADRs.