Sat, Jul 31, 2004 - Page 10 News List

TAIEX rises on strong Q2 earnings by TSMC


Shares closed higher yesterday after Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) reported strong second-quarter earnings and issued a positive outlook for the third quarter, analysts said.

The TAIEX rose 70.91 points, or 1.3 percent, to 5,420.57. Trading totaled NT$52.07 billion (US$1.52 billion), up from NT$41.70 billion in the previous session.

TSMC, the world's largest made-to-order chip supplier, soared 4.6 percent to NT$42.9, while smaller rival United Microelectronics Corp (聯電) rose 1.9 percent to NT$21.7.

TSMC said on Thursday that its second-quarter earnings almost doubled to NT$23.41 billion compared to the same period last year.

As a whole, electronics shares gained 1.6 percent, but some analysts were wary about the future of memory chip stocks. Many of them failed to hold on to their early gains because of concerns that chip prices will fall further given a high level of unsold stocks, said Stanley Chou, a manager at Barits Securities Corp (倍利證券).

There was also talk that South Korea's memory chip giant Hynix would dump chips onto the region, Chou said.

"This has added to concerns about the price outlook for the third quarter," he said.

Mark Lu, a manager at Invesco Taiwan Ltd (景順投信), said he believes that yesterday's rally is only a respite, and the midterm trend still points down.

Stocks of flat-panel makers generally finished slightly higher, giving up bulk of their early gains because investors remained worried about further declines in pro-duct prices down the road, anal-ysts said.

AU Optronics Corp (友達光電) ended up 0.3 percent at NT$39.60. Quanta Computer Inc (廣達電腦) rose 3.8 percent to NT$55, while Compal Electronics Inc (仁寶) gained 3 percent to NT$33.90.

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