Hopes of direct links give slight boost to TAIEX

Shares on the local bourse ended slightly higher yesterday, led by transportation companies on renewed hopes of direct links with China, dealers said.

The TAIEX finished 6.82 points, or 0.1 percent, higher at 6,128.34 in dealings valued at NT$98.36 billion (US$3.15 billion).

However, declining issues outnumbered advancers 481 to 290, while 214 issues ended the day unchanged.

Taiwan International Securities (金鼎證券) sales manager Andrew Teng (鄧安瀾) said shipping issues rose on anticipation the government and People First Party (PFP) would agree to work together on transport links with China.

President Chen Shui-bian (陳水扁) and PFP Chairman James Soong (宋楚瑜) held a rare meeting yesterday and agreed to work together to promote links with China.

Evergreen Marine Corp (長榮海運), one of Asia's largest cargo shipping firms, closed up 2.3 percent at NT$31.40, while rival Wan Hai Lines (萬海) jumped 4.2 percent to NT$34.90.

Electronics shares largely weighed on the market, with the subindex dropping 0.2 percent.

The world's largest contract chip manufacturer, Taiwan Semiconductor Manufacturing Co (台積電), lost 0.9 percent to NT$53. Rival United Microelectronics Corp (聯電) shed 0.5 percent to NT$20.20.

Chip design firms like MediaTek Inc (聯發科技), the world's largest designer of chips for digital video disc players, traded higher on hopes they'll be able to get better prices from the contract chipmakers, dealers said. MediaTek rose 7 percent to NT$230.

Higher oil prices and a stronger local currency combined to push Formosa Petrochemical Corp (台塑石化) up 1.7 percent to NT$60.50, on prospects of higher product prices and lower costs of imported raw materials, analysts said.