TAIEX rises half a percent, led by steel, chip stocks

Share prices closed 0.56 percent higher yesterday, supported by gains in chip giant United Microelectronics Corp (UMC, 聯電) and a technical rebound in steel stocks, dealers said.

They said the tone was cautious as the market waits for more second quarter corporate results.

The TAIEX closed up 35.61 points at 6,343.54, on turnover of NT$89.49 billion (US$2.8 billion).

"[The] rally in UMC and DRAM firms attracted interest in other large-cap stocks, that have been correcting for quite a while," said Alex Huang, assistant vice president of Barits International Securities (倍利證券).

UMC's strength was bolstered by expectations of an improvement in the tech sector's outlook and the company's earlier positive guidance, he said.

In addition, foreign investors' recent interest proved to be encouraging to the local bourse.

UMC rose 4.5 percent to close at NT$21.30 on a technical rebound after going ex-dividend, with sentiment also boosted by a strong showing in its American Depositary Shares (ADSs) overnight, coupled with foreign investors' position-building in its common shares on Monday.

The rally in UMC also fuelled interest for peer Taiwan Semiconductor Manufacturing Co (台積電), which added 3 percent to end at NT$54.90.

First Financial Holding Co (第一金控) rose 1.5 percent to NT$27.10, after a report that the government may invite domestic and foreign financial institutions to bid for First Financial.

Among other stocks in focus, China Steel Corp (中鋼) rose 3.4 percent to NT$27.40, while U-Ming Marine Transport Corp (裕民) gained 6.8 percent to NT$35.25.