Stock prices keep climbing, led by UMC and Chi Mei

Stocks rose yesterday, lifting the TAIEX for a second day. Computer-related companies such as United Microelectronics Corp (UMC, 聯電) advanced as gains in US peers raised optimism that local firms will do well in the second half of the year.

The TAIEX added 49.79, or 0.9 percent, to 5,779.09. About four shares rose for each that fell. TAIEX futures for July delivery gained 0.9 percent to 5,712.

UMC, the world's second-largest supplier of made-to-order chips, rose 1.3 percent to NT$24.10. Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest maker of flat-panel displays used in computers and televisions, rose 2.8 percent to NT$55.

Memory-chip maker Powerchip Semiconductor Corp (力晶半導體) jumped 6.3 percent to NT$25.5, while smaller rival ProMOS Technologies Inc (茂德科技) rose 6.6 percent to NT$17.7 after US giant Micron Technology Inc issued a bullish outlook overnight.

Micron, the world's second largest chip maker, reported a strong profit in its most recent quarter. It also said large personal computer makers that buy its chips are projecting about a 20 percent sequential increase in demand in both the third and fourth quarters.

Financial shares such as Cathay Financial Holding Co (國泰金控), the nation's largest financial group, fell on news reports that some foreign investors plan to sell their shares after recent gains and switch to electronics companies.

Cathay Financial fell 0.8 percent to NT$62. Chinatrust Financial Holding Co (中信金控), the country's largest credit card issuer, lost 1.3 percent to NT$37.