Taiwan plastics shares rallied as some investors bet product prices will keep rising in the peak season. Taiwan Styrene Monomer Corp led the way.
Leaving the market mixed, Taiwan Semiconductor Manufacturing Co and some electronics companies fell on concern the US Federal Reserve may raise interest rates, damping demand from some of their biggest customers.
The benchmark TWSE Index edged up 1.57, or 0.02 percent, to 7,836.94 after reaching a two-month high Tuesday. Trading rose to NT$125.1 billion (US$3.9 billion), compared to the three-month daily average of NT$106.9 billion. Some 278 issues fell, 168 gained and 83 were steady.
``The declines of US shares prompted selling of Taiwan's high-tech shares,'' said Jerry Chen, who manages NT$1 billion for First Global Investment Trust Co. Chen sees the index jumping to 9,000 in the fourth quarter on the island's economy solid outlook.
Plastics shares gained, led by Taiwan Styrene Monomer Corp and Grand Pacific Petrochemical Corp. They are ``benefiting from rising product prices, which gained about 10 percent last week and are expected to rise more,'' said Grace Lee, manager of Jardine Fleming Investment Trust Co's NT$4.8 billion (US$151 million) New Technology Fund.
``Their peak season is August through November, suggesting there's more uptrend ahead.'' Taiwan Styrene rose by the maximum 7 percent limit to NT$54 and Grand Pacific gained 7 percent to NT$28.50. Nan Ya Plastics Corp jumped NT$1.50, or 2.7 percent, to NT$56.50.
High-tech stocks declined following the NASDAQ Composite Index 1.5 percent fall to 2872.43.
TSMC, which relies on the US for half of its sales, fell NT$1, or 0.8 percent, to NT$140. The slide also came after one of its generators experienced difficulties this morning, sparking concern its output will be hurt. J.H. Tseng, a TSMC spokesman, said the problem was immediately fixed and expected little impact on production.
Compal Electronics Inc, a supplier of laptop computers to Dell Computer Corp, dropped NT$1.50, or 1.4 percent, to NT$105. Advanced Semiconductor Engineering Inc slipped NT$1, or one percent, to NT$95.50.
Memory chipmakers rallied and were the three most actively traded stocks by value on optimism their sales will rise to record levels in October, Lee said.
Winbond Electronics Corp soared NT$3.50, or 6 percent, to NT$62. Mosel Vitelic Inc gained NT$1.20, or 3.4 percent, to NT$36.30. Macronix International Corp, a flash memory chipmaker, rose NT$0.90, or 2.2 percent, to NT$41.10.
CMC Magnetics Corp, which makes recordable computer discs for Mitsubishi Corp and other buyers, fell NT$1.50, or 1.2 percent, to NT$126.50. CMC was the least favored stock among foreign investors yesterday as they sold 4.2 million shares. Ritek Inc, the closest rival of CMC, dropped NT$3, or 1.4 percent, to NT$206.
Silicon Integrated Systems Inc, which makes chip-sets compatible with Intel's processors, rose NT$6, or 5.4 percent, to NT$118. SIS said Tuesday third-quarter earnings rose to NT$481.9 million (US$15.2 million) -- exceeding its target of NT$339 million -- as it sold more products to US companies such as Compaq Computer Corp.
In related news, Taiwan's Securities & Futures Commission said it approved the purchase by four foreign institutional investors of as much as US$547 million worth of Taiwan stocks.
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