Thu, Aug 10, 2006 - Page 11 News List

Electronics firms gain in wake of US rate announcement

AP , TAIPEI

Shares rose yesterday on gains in electronics companies, as investors refocused on the nation's export outlook after the US Federal Reserve left interest rates unchanged.

The Weighted Price Index of the Taiwan Stock Exchange advanced 71.08 points, or 1.1 percent, to 6,573.22.

"Investors are slowly returning to the market after the Fed meeting," said Alex Huang, an assistant vice president at Mega Securities.

The Federal Reserve left interest rates unchanged for the first time in two years, hoping that a nascent economic slowdown will cap growing inflation.

Huang said that investors were able to focus on fundamentals now that the threat of further rate rises had eased.

Exports last month, which were up 21.2 percent to US$19.58 billion from the same month last year, show that demand continues to be quite strong in the third quarter, traders said.

This boosted electronics companies, which gained 1.7 percent overall.

AU Optronics, the No. 3 flat-panel maker globally by shipments, rose 0.9 percent to NT$49.2, while smaller rival Chi Mei Optoelectronics increased 0.6 percent to NT$39.05.

Taiwan Semiconductor Manu-facturing Co, the world's biggest contract chipmaker by revenue, rose 0.5 percent to NT$55.8, and rival United Microelectronics Corp gained 1.4 percent at NT$18.35.

Taiwan Green Point, which makes mobile-phone casings, jumped 6.1 percent to NT$79.5.

Strong sales of high-end mobile phones worldwide contributed to the share's rise, Fubon Securities' Head of Sales Trading Derek Lam said.

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