Shares rose to a fresh 66-month high yesterday, led by gains in chipmakers.
Hon Hai Precision Industry Co (鴻海精密) led gains by electronic-component makers after Apple Computer Inc reported that its second-quarter profit climbed.
"Hot selling consumer electronic items can help maintain sustainable growth for component suppliers," said Michael On, who manages about US$60 million at Beyond Asset Management Co. "Taiwanese suppliers can expect a windfall."
The TAIEX gained 63.96 points, or 0.9 percent, to 7,102.74, its highest closing figure since Sept. 15, 2000, when it finished at 7,155.45. Turnover was NT$136.61 billion (US$4.22 billion).
There were 482 gainers, 387 decliners and 132 shares closed unchanged.
Apple said second-quarter profit jumped 41 percent, driven by rising sales of iPods and Macintosh personal computers.
Hon Hai, the nation's largest electronics exporter, increased 2.6 percent to NT$220. Hon Hai provides computer connectors and some computer assembly for Apple. Foxconn Technology Co (
Traders said the strong performance by chipmakers was caused by US semiconductor data showing new orders for chips outpacing shipments, implying a positive business outlook.
Taiwan Semiconductor Manu-facturing Co (台積電), the world's largest contract chipmaker by revenue, rose 0.7 percent to NT$69.9.
"The consecutive rise of the semiconductor industry's book-to-bill ratio gave a boost to TSMC's shares today," said Alex Huang (
"Worries over political risks have eased and sentiment has improved," Huang said. Investors are pinning their hopes on gains by laggards and further foreign capital inflows, he added.
The strong book-to-bill ratio also boosted shares of chip packagers and testers.
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