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Morgan Stanley index move boosts chip manufacturers

Shares in the nation's computer memory chipmakers, led by ProMOS Technologies Inc (茂德科技), gained yesterday after index complier Morgan Stanley Capital International (MSCI) Barra announced on Thursday it would add several local stocks to its indices.

MSCI additions usually trigger a rally as global investors that track the MSCI indices will have to add those shares to their investment portfolios.

In its latest index review, MSCI Barra said it would include Taiwanese computer memory chipmakers ProMOS, Nanya Technology Corp (南亞科技), Inotera Memories Inc (華亞科技) and chip distributor Mosel Vitelic Inc (茂矽) in its index series, a statement on its Web site said.

The revised MSCI indices will take effect after the stock market closes on May 31.

ProMOS, the nation's No. 3 dynamic random access memory (DRAM) chip maker, saw its shares surge 5.02 percent to close at NT$13.6 on the over-the-counter GRETAI Securities Market, although analysts expected local DRAM companies to swing to losses in the current quarter on price erosion.

ProMOS' gain outpaced the broader TAIEX index's 1.76 percent increase yesterday.

The TAIEX jumped 139 points yesterday to end at 8,066 points, boosted by foreign investors, who bought a net of NT$10.8 billion (USS$325 million) worth of local shares, including Nanya and Inotera.

Inotera is a DRAM joint venture between Nanya and German memory chipmaker Infineon Technologies AG.

Nanya, the nation's No.2 DRAM supplier, and Inotera also saw their shares rise 2.32 percent and 3.76 percent respectively, to NT$28.7 and NT$38.65 on the Taiwan Stock Exchange. Meanwhile, shares of Powerchip Semiconductor Corp (力晶半導體), the nation's largest DRAM supplier, rose 2.74 percent to NT$20.6.

Apart from the memory chipmaking firms, several other Taiwanese high-tech firms were also included in the latest MSCI review.

The new additions include local electronics maker Wistron Corp (緯創), solar cell maker Motech Industries Inc (茂迪), Epistar Corp (晶元光電), the nation's largest maker of chips that run light-emitting diodes in mobile phones, Tripod Technology Corp (健鼎科技), a local automation equipment maker and Kinsus Interconnect Technology Corp (景碩科技), which makes electronics components.

Powertech Technology Inc (力成科技), one of the nation's memory chip testing and packaging service providers, Unimicron Technology Corp (欣興電子), a unit of United Microelectronics Corp (聯電) that manufactures printed circuit boards and Vanguard International Semiconductor Corp (世界先進), a chipmaking unit of Taiwan Semiconductor Manufacturing Co (台積電), will also be added to the MSCI indices.
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