TAIEX climbs on growth hopes for first week in 5

Stocks rose yesterday, with the key index advancing for the first week in five. China Development Financial Holding Corp (中華開發金控) and Chinatrust Financial Holding Co (中信金控) led gains on speculation that the government may have bought equities to support the market.

Shares, including AU Optronics Corp (友達光電), also got a boost after Lin Hsin-i (林信義), chief economic adviser to the president, said the economy may expand 6 percent this year, its fastest growth in seven years.

The TAIEX rose 149.61, or 2.6 percent, to 5,964.94. Taiex futures for delivery in June climbed 2.7 percent to 5,840.

The nation's postal savings and three other government-controlled funds are helping underpin the local stock market, Lin said. The government activated the National Stabilization Fund (國安基金) earlier this week, putting NT$130 billion at its disposal to buy shares.

"Taiwan's economy should grow at least 5 percent this year," said Michael Ding (丁予嘉), president of Fubon Asset Management Co (富邦投顧).

"The TAIEX's fair value should be the level at around 7,200 points, so the current level is really cheap," he said.

China Development Financial, the nation's largest industrial bank, rose 1.7 percent to NT$17.60. Chinatrust Financial, the country's largest credit card issuer, gained 5 percent to NT$35.50.

AU Optronics, the world's third-largest maker of flat-panel displays used in computers and televisions, jumped 5.6 percent to NT$66.50. MediaTek Inc(聯發科技), the world's largest maker of chips for DVD players, rose 2.6 percent to NT$316.