Unexpected growth in exports drives stock prices up

Stocks rose for a third day yesterday, led by Taiwan Semicon-ductor Manufacturing Co (台積電) and Quanta Computer Inc (廣達電腦), after exports grew faster than expected last month.

Exports climbed 39.5 percent from a year earlier to US$15.71 billion after rising 22.8 percent in April, the Ministry of Finance said on Monday.

The TAIEX added 50.94, or 0.9 percent, to 5,986.76. The benchmark has gained 5.6 percent over the past three sessions. About three stocks rose for every two that fell. Taiex futures for June delivery rose 1.5 percent to 5,981.

"Taiwan's exports hit a record in May despite the slow season, signaling an even brighter outlook when the electronics sector enters its peak season in the third quarter," said Kevin Yang, vice president of International Investment Trust Co (國際投信).

TSMC, the world's largest supplier of made-to-order chips, rose 2.7 percent to NT$56.50.

Quanta Computer, the world's largest notebook computer maker, rose 1.4 percent to NT$73.

AU Optronics Corp (友達光電), the world's third-largest maker of flat-panel displays used in computers and televisions, fell 0.9 percent to NT$56 after surging as much as 3.5 percent.

The company's sales last month more than doubled from a year ago to NT$16.6 billion, according to a statement to the Taiwan Stock Exchange. Sales were NT$15.8 billion in April this year.

China Steel Corp (中鋼) rose 3 percent to NT$30.60 after the legislature ordered the government to cease cutting its stake further in China Steel.

Hon Hai Precision Industry Co (鴻海精密), the nation's largest electronics company, fell 1.8 percent to NT$140.