Thu, May 18, 2006 - Page 11 News List

Currency gains help TAIEX bounce back, led by TSMC, UMC

AFP AND AP , TAIPEI

Share prices closed 0.66 percent higher yesterday in a technical rebound triggered by a recovery in the local currency, but trade was hampered by some profit-taking, dealers said.

The TAIEX closed up 46.93 points at 7,116.83.

Turnover was NT$110.15 billion (US$3.48 billion).

"The appreciation of the local currency re-ignited hopes for foreign capital inflows and injected [some momentum] into the stock market," said Tom Tang (湯建源), president of Kai Yuan Securities Investment Consultant Co (開元投顧).

Expectations for an influx of fresh foreign capital supported large-cap stocks in particular.

In addition, "some stocks backed with hefty real estate [assets] attracted interest again thanks to the strength of the Taiwan dollar," Tang said.

Before yesterday's rise, the benchmark index fell by nearly 4 percent to the closing level of 7,069.9 on Tuesday, in a three-session decline as stock markets fell globally.

Boosting the main board's rise, Taiwan Semiconductor Manufacturing Co (台積電) rose 2.1 percent to NT$63.7.

Rival United Microelectronics Corp (聯電) gained 3.7 percent to NT$21.1.

However, liquid-crystal-display (LCD) panel makers fell on growing concerns about lower panel prices in the second half of the year.

AU Optronics Corp (友達光電), the world's third-largest LCD panel maker by revenue, fell 1.3 percent to NT$52.1, extending Tuesday's 2.2 percent decline.

The nation's second-largest LCD panel maker by revenue, Chi Mei Optoelectronics Corp (奇美電子), lost 1.2 percent at NT$42.7.

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