Dramatic market boosts most stocks to two-week high

Shares ended higher yesterday, with the TAIEX erasing early losses to end at its best level in more than two weeks.

The TAIEX finished up 110.74 points, or 2.1 percent, at 5,427.61, the highest close since 5,489.10 on July 19.

Earlier in the session, concerns about high oil prices nudged the index down to 5,255.06. However, tech stock gains -- and probably some buying by government funds -- helped the market bounce back, dealers said.

"The market is quite dramatic today, and I would believe the government funds played a big role in this," said Stanley Chou, a Barits Securities manager.

Trade rose to NT$73.27 billion (US$2.14 billion) from Wednesday's NT$39.84 billion, with 611 stocks ending higher, 115 lower and 190 flat.

Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest panel maker, ended 5.7 percent higher at NT$40.9. Its rise boosted other flat-panel manufacturers, analysts said.

AU Optronics Corp (友達光電) rose 5.6 percent to NT$41.2, while Quanta Display Inc (廣輝電子) surged 6.9 percent to NT$18.6.

Notebook makers rose on hopes that a weak NT dollar will boost sales, Fubon Securities' head of trading Derek Lam said.

Quanta Computer Inc (廣達電腦), the world's largest contract notebook maker, rose 4.6 percent to NT$57.5, while Compal Electronics Inc (仁寶電子) climbed 6.2 percent to NT$30.8.

Siliconware Precision Industries Co (矽品精密), the nation's second-largest semiconductor packager, soared 7 percent to NT$21.5. The firm said net profit for the second quarter reached NT$1.45 billion, more than double the same quarter last year.