TAIEX rises as US output report boosts TSMC, exporters

Stocks rose yesterday as exporters, including Taiwan Semicon-ductor Manufacturing (TSMC, 台積電), gained after a report said that US manufacturing climbed last month.

The TAIEX added 16.82, or 0.3 percent, to 5,367.22. About one share fell for each that rose. The index futures for August advanced 2 points to 5,282.

TSMC, the world's largest supplier of made-to-order chips, gained 2.8 percent to NT$44. Rival United Microelectronics Corp (聯電) advanced 1.4 percent to NT$21.80.

Nanya Technology Corp (南亞科技), the nation's third-largest memory-chip maker, fell 3 percent to NT$22.30. Powerchip Semiconductor Corp (力晶半導體), the largest, tumbled 4.9 percent to NT$21.40.

Spot prices of the most widely used computer memory chip have fallen 6.8 percent since July 15, according to the Web site of Dramexchange.com.

"The continuous price falls in memory chips raises doubts about whether we have been too optimistic about the industry," said Kevin Lin, a fund manager at Shinkong Investment Trust Co (新光投信).

Cathay Financial Holding Co (國泰金控), the country's biggest financial services company, rose as much as 1.8 percent before ending unchanged at NT$55.50. The company may raise its full-year profit forecast after earning about four-fifths of its estimate in the first half, company spokesman Lee Chang-ken (李長庚) said.

China Steel Corp (中鋼), the nation's largest steelmaker, gained 1.7 percent to NT$30. Sales last month surged 31 percent to NT$14.94 billion from a year earlier.