Intel earnings help propel TAIEX to 14-month high

Shares closed at their highest level in more than 14 months yesterday after the quarterly earnings report from Intel Corp, the world's biggest chipmaker, lifted the nation's tech stocks.

The TAIEX rose 7.47 points, or 0.11 percent, to 6,423.81, its highest closing level since finishing at 6,574.75 on April 28 last year. Turnover was NT$123.61 billion (US$3.86 billion).

Traders expressed optimism that yesterday's rise would continue. The index may rise as much as 0.5 percent today on more positive earnings results from US companies, said Simon Chao (趙永宏), a fund manager with President Investment Trust Corp (統一投信).

The world's biggest supplier of made-to-order chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), rose 0.4 percent to NT$56.40 after Intel said its second-quarter earnings grew 16 percent, better than analyst expectations. Rival United Microelectronics Corp (聯電) gained 0.41 percent to NT$24.30.

TSMC shares have gained nearly 18 percent since Jan. 1 because investors expect the chipmaker's earnings growth to resume in the second half, analysts said.

Computer memory chipmakers such as Powerchip Semiconductor Corp (力晶半導體) also gained on news of Intel's earnings. Powerchip rose 0.6 percent to NT$24.90, just short of the 12-month high of NT$25.15 it reached last Thursday.

"While highly priced tech shares continue to set new highs, they should provide more room for the share prices of laggards to improve," Yuanta Core Pacific Securities said in a report. "The financial sector may also receive some attention in the near term."