United Microelectronics and MediaTek shares rise


Fri, Dec 27, 2002 - Page 11

Taiwan stocks advanced for the first day in four. MediaTek Inc (聯發科技) gained after a local newspaper said sales this month at the world's largest designer of chips for DVD players may top a previous record.

United Microelectronics Corp (聯電) gained after the world's second-biggest supplier of made-to-order chips said it's meeting expectations of factory use and sales the company set for the fourth quarter.

"Funds are moving into shares of companies that have potential for growth especially next year, such as in consumer electronics goods like digital cameras and DVD players," said Joe Wu, an analyst at Truswell Securities Investment Trust Co (富鼎投信), which has about NT$4.5 billion (US$129 million) of equities under management.

Shares on the TAIEX rose 82.94, or 1.9 percent, to close at 4,567.37 yesterday.

About 10 stocks gained for every three that fell. The value of trade was NT$49.6 billion, 36 percent lower than the daily average in the past three months.

MediaTek added NT$11, or 3.8 percent, to end at NT$302 per share. Sales in December may top the NT$3.05 billion monthly peak reached in October after shipments were better than expected, the paper reported, citing no one.

United Microelectronics rose US$0.80, or 3.6 percent, to NT$23.

CMC Magnetics Corp (中環) surged NT$0.9, or 6.6 percent, to NT$14.45. The world's second-largest maker of recordable compact discs changed the use of proceeds from a NT$150 million convertible bond sale to expanding production capacity, from an originally planned debt repayment, it said in a statement to the Taiwan Stock Exchange.

Silicon Integrated Systems Corp (矽統) rose NT$1.6, or 6.6 percent, to NT$25.8.

The world's third-largest maker of computer chipsets said it sold NT$138 million of new shares overseas to help pay off bank loans and buy new equipment for its first chip plant.

Automaker Yieh Loong Co (燁隆) fell NT$0.55, or 6.9 percent, to NT$7.45.

The affiliate of Taiwan's largest steelmaker said it's seeking to reach an agreement with 40 banks by next month to lower the interest rate on about NT$18 billion (US$516 million) of debt.

Investors won't be able to buy shares of the affiliate of Taiwan's largest steelmaker using borrowed money in so-called margin trading starting Friday, according to the Taiwan Stock Exchange.