Rebound in chip and flat-panel stocks boost TAIEX

Shares ended slightly higher yesterday, led by a rebound for chip and flat-panel stocks after their recent weak performance, analysts said.

The TAIEX finished 19.98 points, or 0.3 percent, higher at 5,891.05. Decliners marginally outnumbered gainers 330 to 311 with 188 stocks unchanged in dealings valued at NT$69.28 billion (US$2.04 billion), up from NT$65.34 billion (US$1.93 billion) on Wednesday.

The benchmark index touched a session low of 5,826.38 on concerns over accounting irregularities, after compact disc maker Summit Computer Technology Co (皇統科技) said late Wednesday that its sales statements were inflated by NT$3.7 billion (US$109.3 million) between 2001 and this year. Shares in Summit Computer Technology fell by the daily maximum limit of 7 percent to NT$2.86.

Shares in AU Optronics Corp (友達光電), the world's third-largest maker of flat screens, advanced 1.8 percent to NT$44.80, while rival Chi Mei Optoelectronics Corp (奇美電子), No. 4 worldwide, gained 2.2 percent to NT$45.70.

Hopes of higher product prices for dynamic random access memory (DRAM) chips spurred strong buying in related shares.

Powerchip Semiconductor Corp (力晶半導體), the country's largest DRAM maker, rose 4.6 percent to NT$27.10, and ProMOS Technologies Inc (茂德科技) was up by the stock exchange's daily maximum limit of 7 percent to NT$14.00.

Another bright spot among the tech sector was Compal Communications Inc (華寶通訊), a major handset supplier for Motorola, buoyed by hopes that the handset maker will post strong revenue in the second half of this year.