AU Optronics halts its tumble to lead gainers on TAIEX

Stocks closed higher yesterday, led by AU Optronics Corp (友達光電), after investors judged the 9.1 percent tumble of the world's third-largest maker of flat-panel displays last week as excessive.

The TAIEX added 3.05, or 0.1 percent, to 6,081.01, its highest since May 28. About three shares rose for every two that declined. Index futures for October delivery climbed 0.3 percent to 6,123.

Formosa Plastics Corp (台塑) led declines among the largest companies by market value on concerns of higher borrowing costs after the central bank governor hinted at higher interest rates.

Formosa Plastics declined 1.8 percent to NT$55.50.

The company will borrow US$323 million from 11 banks including BNP Paribas, the main lenders said on Sept. 2.

AU Optronics, the world's third-largest maker of flat panel displays, rose 0.9 percent to NT$43.90.

Higher rates would benefit lenders and insurers because that would help boost their interest incomes.

Mega Financial Holding Co (兆豐金控) gained 0.5 percent to NT$22.30. China Development Financial Holding Corp (中華開發金控) added 1.3 percent to NT$15.90.

Some technology shares declined after Advanced Micro Devices Inc, the second-largest maker of microprocessors for personal computers in the world, said third-quarter sales fell from the preceding period on weaker demand for flash memory chips.

Taiwan Semiconductor Manu-facturing Co (台積電) shed 0.4 percent to NT$45.30. Nanya Technology Corp (南亞科技), the nation's third-largest memory-chip maker, lost 1 percent to NT$29.