Wed, Aug 01, 2007 - Page 11 News List

Stocks rebound; Cathay, Quanta rise

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Stocks rose for the first day in five as investors judged recent declines excessive and a newspaper reported the country's mutual funds may invest more. Cathay Financial Holding Co (國泰金控) led gains.

"Investors have regained their composure after being knocked around in the global stock market turmoil," said Vickie Hsieh, who helps oversee US$1.4 billion at President Investment Trust Corp.

"Leading Taiwan companies offering good value will be the most appealing," she said.

Quanta Computer Inc (廣達電腦) rose after a newspaper report said the company will likely receive an order from Toshiba Corp to make notebook computers.

The TAIEX index jumped 214.68, or 2.4 percent, to close at 9,287.25 in Taipei. The measure fell 6.9 percent in the past four trading days, wiping out US$54.9 billion in market value. For the month, the index rose 4.6 percent, its third straight monthly advance.

About six stocks rose for every one that declined yesterday. Futures due this month added 2.1 percent to 9,176.

Cathay Financial, the nation's largest insurer, advanced NT$5.40 (US$0.164), or 6.7 percent, to NT$86.20. Hon Hai Precision Industry Co (鴻海精密), the nation's biggest electronics exporter, gained NT$9, or 3.4 percent, to NT$272. Mediatek Inc (聯發科), the world's largest supplier of chips for DVD players, surged NT$38, or 6.9 percent, to NT$593.

US stocks rebounded from the worst two-day skid since 2003 after Wall Street's biggest securities firms said the sell-off made banks, homebuilders and retailers relative bargains.

The Standard & Poor's 500 Index added 1 percent, while the Dow Jones Industrial Average gained 0.7 percent. Stocks tumbled around the world last week on concern higher borrowing costs will slow takeovers, spur defaults and curb earnings.

Stocks also gained after the Chinese-language Commercial Times reported the nation's mutual funds may invest NT$100 billion in domestic shares in the second half.

About NT$35 billion of mutual funds are expected to start trading this week, the newspaper said, quoting the Securities and Futures Bureau of the Financial Supervisory Commission.

Quanta, the world's largest maker of notebook computers, added NT$1.80, or 3.5 percent, to NT$53.70.

China Petrochemical Development Corp (中石化) surged NT$1, or 6.9 percent, to NT$15.50. The company has received permission to build a chemical plant in China, the Chinese-language Economic Daily News reported yesterday.

Far EasTone Telecommunications Co. (遠傳電信), Taiwan's third-largest phone company by number of customers, rose NT$0.40, or 1.1 percent, to NT$38.20. Far EasTone said on Monday that it would begin offering Google Inc's Gmail service to subscribers from today.

Synnex Technology Intl Corp. (聯強國際), a distributor of mobile phone handsets, jumped NT$4.50, or 6.9 percent, to NT$69.50.

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