TAIEX closes higher as flat panel stocks lead market gains

Shares recovered yesterday to end above the 6,000-level for the first time since Tuesday, tracking overnight gains in the US, with flat panel stocks leading the rise, analysts said.

The TAIEX closed up 47.90 points, or 0.8 percent, to 6,005.88. Advancers outnumbered decliners 516 to 339 with 162 stocks unchanged.

Turnover rose to NT$70.84 billion (US$2.24 billion) from NT$56.63 billion Wednesday.

"Overnight gains on Wall Street provided a cue for local investors, and spurred buying in local technology stocks," said Jose Lee, an analyst at First Taisec Securities (一銀證券).

Liquid-crystal-display screen maker AU Optronics Corp (友達光電) rose 5.3 percent to NT$46.10.

Roger Yu (游智超), an analyst at Polaris Securities Co (寶來證券), said investors are more optimistic over panel prices, and are betting on a limited downside in the next few months.

"The fundamentals aren't likely to worsen, and prices for mainstream 17-inch LCD screens are expected to stabilize around current levels," he said.

Shares in Chi Mei Optoelectronics Corp (奇美電子) were up 4.5 percent at NT$46.25, and Chunghwa Picture Tubes Ltd (中華映管) gained 1.6 percent to NT$13.10.

"Investors have become more interested in tech stocks in the belief the shares are close to the bottom," said Stanley Chou, an analyst at Barits International Securities Co (倍立證券).

Global No.1 contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) added 1.8 percent to NT$51.50, and smaller peer United Microelectronics Corp (聯電) gained 2.4 percent at NT$19.05.