TAIEX on the rise after Quanta, Sanyo joint venture reports

Shares rose yesterday, led by Quanta Computer Inc (廣達電腦), on reports the manufacturer of liquid-crystal-display panels would form a joint venture with Japan's Sanyo Electric Co.

The TAIEX rose 23.59 points, or 0.37 percent, to 6,528.57. For the week to March 17, the weighted index closed up 37.89 points or 0.58 percent after a 0.96 percent decline the previous week.

Quanta Computer, the world's largest maker of laptop computers, rose 4.3 percent yesterday to NT$52.

Mobile phone maker High Tech Computer (宏達電) rose 2.5 percent to NT$895, partly offsetting its 5.9 percent decline on Thursday on profit-taking, analysts said.

Before Thursday's pullback, High Tech Computer had gained more than 31 percent this month on expectations that brisk demand for high-end mobile phones will boost the company's earnings growth this year.

Solar-cell maker E-ton Solar Tech Co (益通光能) rose by the daily maximum limit of 7 percent to NT$1,060, on continued optimism about strong demand for solar energy.

Shares are expected to extend modest gains next week on continued interest in select electronic stocks, but the tone will remain cautious on concerns over relations with China, dealers said yesterday.

They said a key issue will be what stance foreign investors take, especially after demonstrations at the weekend following President Chen Shui-bian's (陳水扁) harder line on Beijing.

Against that backdrop, the market is expected to trade between 6,400 and 6,700 points next week.