Sat, Feb 19, 2005 - Page 11 News List

TAIEX shares close up on tech stock rebound

BOUNCING BACK Tech stocks made gains which were led by UMC chairman Tsao's dismissal of allegations the chipmaker was involved in illegal Chinese investment


Taiwan share prices closed 0.71 percent higher Friday on the back of a technical rebound led by United Microelectronics Corp (UMC, 聯電) and supported by continued foreign investor interest, dealers said.

The market reacted favorably to UMC chairman Robert Tsao's (曹興誠) rejection of allegations his company had illegal investment links with China-based HeJian Technology Co (和艦科技) and his statement that he would be ready to buy the Chinese chipmaker.

UMC, the world's second-largest custom chip maker, had been badly hit by the allegations and subsequent government probe into the matter.

The weighted index closed up 43.27 points at 6,115.43, off a low of 6,062.96 and a high of 6,128.64, on turnover of NT$86.40 billion (US$2.73 billion).

Risers led decliners 480 to 315, with 191 stocks unchanged.

A total of 50 stocks closed limit-up and five limit-down.

The paper sector was up 1.53 percent, electronics rose 1.43 percent, plastics/petrochemicals 0.33 percent and cement added 0.21 percent.

The construction sector was down 1.93 percent, food fell 0.52 percent, textiles 0.42 percent and financials 0.05 percent.

"The market staged an immediate rebound after yesterday's pull-back," said Michael Hsu (許派一), an assistant vice president at Jih Sun Securities Investment (日盛投顧).

Hsu said there was a speculative element in today's share gains as interest shifted to some small cap stocks from market bellwethers, he said.

"Such a shift of focus might signal a fast-approaching end to the bullish trend from Monday, to be followed by some consolidation if not a decisive decline."

Hsu said he is not pinning high hopes on much further gains above 6,100 points, although the market should be able to hold at above 6,000 points in the event of any near-term correction. UMC was up NT$0.50 at NT$20.40, supported by bargain-hunting after recent heavy losses due to the government probe.

UMC was the most active stock in the index. About 215.32 million shares changed hands.

The next most active issues were Wintek Corp (勝華科技), up 1.20 at 38.00,

Taiwan Semiconductor Manufacturing Co (台積電) was up 0.50 at 54.00 and Chi Mei Optoelectronics Corp (奇美電子) added 0.50 at 46.70.

AU Optronics Corp (友達光電) rose up 0.70 at 49.00 as investors reacted favorably to its guidance for its own business and the global market for thin-film-transistor liquid crystal display panels this year.

DRAM makers were also firmer in active trade, with Nanya Technology Corp (南亞科技) up 0.70 at 24.40, Powerchip up 1.00 at 26.50 and ProMOS Technologies Inc (茂德科技) 0.40 higher at 14.40.

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