Wed, Aug 09, 2006 - Page 11 News List

TAIEX ends higher on robust trade data last month

AFP AND CNA , TAIPEI

Share prices closed 1.33 percent higher yesterday as last month's robust trade data encouraged investors to increase exposure to stocks with attractive valuations after a recent correction, dealers said.

The government said on Monday that the nation's exports last month grew 21.2 percent year-on-year to an all-time high of US$19.58 billion, compared with a 16.5 percent rise to US$18.10 billion last month.

The TAIEX closed up 85.53 points at the day's high of 6,502.14 on turnover of NT$59.24 billion (US$1.81 billion).

"The negative leads have now been priced into share prices, paving the way for a rebound on interest in valuation play," said Alvin Teng (鄧安瀾), an assistant vice president at SinoPac Securities (建華證券).

"Electronics scored gains as previous declines had moved them to bottom levels ... their improving fundamental outlook also convinced investors to buy shares," he said.

Teng added that crucial to the local bourse's next immediate trend would be the US Federal Reserve's decision on interest rates, expected to be announced yesterday.

Chi Mei Optoelectronics Corp (奇美電子) closed up NT$0.80 to NT$38.80 after a report that it was likely to team up with TCL Corp, China's largest manufacturer of TV sets, for assembly of flat-panel TV in Foshan, Guangdong Province.

Uni-President Enterprises Corp (統一企業) gained NT$0.55 to NT$24.50.

The company said it was aiming to become the largest food and beverage group in Asia, excluding Japan, over the next three to five years.

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