Shares higher on expectations of demand for mobiles

Shares rose slightly yesterday, on expectations of strong demand for mobile phones in the first quarter of next year.

The TAIEX gained 23.12 points, or 0.4 percent, to 6,258.47.

Handset and handset component makers outperformed the market. Traders said sales will likely be driven by demand for higher-end mobile phones in the first quarter.

"As investors start to talk about the first quarter, handset and related stocks easily stand out as we expect demand for mobile phones, including smartphones, to be strong," KGI Securities (中信證券) trader Bill Huang said.

Among Taiwan's contract mobile-phone makers, Arima Communications (華冠) surged by the daily limit of 7 percent to NT$28.4, and High Tech Computer (宏達電) rose 2 percent to NT$515.

Handset component maker Ichia Technologies (毅嘉) jumped 6.9 percent to NT$29.55, and Silitech Technology (閎暉) climbed 6.9 percent to NT$139.

Airline stocks rose on reports that bookings for the special charter flights between Taiwan and China during the Lunar New Year holiday period will likely be strong.

The civil aviation associations of Taiwan and China reached an agreement last month to organize 72 round-trip charter flights between Jan. 20 and Feb. 13.

Six Taiwanese airlines, including China Airlines (華航) and EVA Airways (長榮), and six airlines from China have been allowed to provide the flights.

China Airlines, the island's largest carrier, rose 1.3 percent to NT$15.45 and EVA Airways gained 3.8 percent to NT$14.95.