TAIEX lifts slightly as heavyweight IT stocks forge ahead

Shares rose slightly yesterday as gains in select heavyweight stocks offset declines on Wall Street.

The TAIEX rose 12.80 points, or 0.2 percent, to 6,686.55.

"The market lacked real catalysts and so volume shrank, but shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) got a boost from Morgan Stanley's upgrade," said Diana Wu, a senior sales trader at Capital Securities Corp (群益證券).

TSMC, the world's largest chip contract maker by revenue, added 1.6 percent to close at NT$62.70, after Morgan Stanley raised its rating on the stock to overweight.

Its close rival United Microelectronics Corp (UMC, 聯電) gained 0.3 percent to NT$19.15, aided by its share buyback plan, Wu said.

UMC said last Wednesday it will buy back and cancel 1 billion shares, or 5 percent of its outstanding shares, from Thursday to April 15.

Separately, the company said late Friday that it plans to appeal the government's decision to fine it for helping set up a foundry company in China,

The government issued a NT$5 million (US$156,000) fine against UMC last Wednesday, saying that there was evidence the company broke the law by helping establish HeJian Technology (Suzhou) Co (和艦科技) in China.

Taiwanese companies are barred by law from investing in, or cooperating with, any Chinese entities without approval from the government.

Advanced Semiconductor Engineering Inc (日月光), the world's largest chip packager by revenue, lost 1.2 percent to NT$28.65, and Nanya Technology Corp (南亞科技) fell 2.4 percent to NT$20.60.