TAIEX heads up in line with gains on South Korean index

Shares ended higher yesterday on bargain hunting after recent declines and in step with gains on South Korea's main stock index, analysts said.

The TAIEX finished 35.58 points, or 0.6 percent, higher at 5,889.52 in dealings valued at NT$56.85 billion (US$1.77 billion). Advancing issues well outnumbered decliners 488 to 255, while 156 ended the day unchanged.

The bourse followed South Korea's KOSPI index, which was up 2 percent at 2:43pm, boosted by better than expected fourth-quarter earnings results from electronics giant Samsung Electronics Co.

Taiwan and South Korea compete for export sales of electronics gear, and indications of strength for either economy normally has some impact on the other.

Contract chip giant Taiwan Semiconductor Manufacturing Co (台積電) closed up 0.4 percent at NT$47, while rival United Microelectronics Corp (聯電) added 0.5 percent to NT$19.

Taiwanese memory chip maker ProMOS Technologies Inc (茂德科技) rose 0.8 percent to NT$13.20 after it signed a deal with South Korea's Hynix Semiconductor to work together on advanced production technology, and to manufacture some Hynix chips.

MediaTek Inc (聯發科技), Taiwan's largest chip designer by revenue, lost 3.2 percent to NT$184.0 after investment banking firm Merrill Lynch cut this year's earnings per share forecast for the company.

Airline shares rose after Taiwanese officials proposed to meet with their Chinese counterparts today to discuss charter flights during the Lunar New Year holiday.