Taiwan stocks rose, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after rival Intel Corp said second-quarter sales may beat some analysts' expectations as computer chip demand improves.
Taiwan's TWSE Index rose 76.66, or 1.4 percent, to 5,508.61, ending a three-day, 1.8 percent loss. Within the index, 265 stocks advanced and 153 declined, while 92 were unchanged. TSMC accounted for about a seventh of the index's gain.
"We've been increasing our weighting in chip stocks in the last month and a half," said Emil Wolter, who helps manage US$3 billion in global emerging markets at Pictet Asset Management in London. "Investors on a 12 to 18-month basis are going to be rewarded." Companies who make chips on a made-to-order basis rose, on hopes demand will improve after Intel, the biggest chipmaker, said second-quarter sales will be US$6.2 billion to US$6.8 billion, more than some analysts expect. Intel also said business from computer makers started to pick up in March, though other markets still look challenging. Intel's stock rose as much as 12 percent in after-hours trading.
TSMC, the biggest chip manufacturer on a made-to-order basis, rose NT$1.50, or 1.8 percent, to NT$85. United Microelectronics Corp (UMC,
Memory chipmakers rose as investors bet that interest-rate cuts by central banks around the world will spur economic growth later this year and boost demand for computers, telecommunication devices and consumer electronic chips. Analysts hope the second half of the year, traditionally the high season in demand for electronics, will spur semiconductor purchases.
Mosel Vitelic Inc (茂矽電子) rose NT$0.90, or 3.7 percent, to NT$25.30. Powerchip Semiconductor Corp (力晶半導體) rose NT$1.20, or 3.8 percent, to NT$33. ProMos Technologies Inc (茂德科技) rose NT$1, or 2.8 percent, to NT$37.20. Winbond Electronics Corp (華邦電子) rose NT$2.50, or 6.3 percent, to NT$42.50.
Banks advanced on hopes their non-performing loans have peaked as the central bank's 62.5 basis point in rate cuts since December may relieve repayment pressures on companies.
China Development Industrial Bank (中華開發工銀), Taiwan's biggest lender by market value, rose NT$0.20, or 0.7 percent, to NT$30.50. Chinatrust Commercial Bank (中國信託商銀), the second-largest, rose NT$0.40, or 1.7 percent, to NT$24.70. United World Chinese Commercial Bank (世華商銀), the third biggest, rose NT$0.60, or 2.3 percent, to NT$26.60.
Compeq Manufacturing Ltd (
Goldman Sachs Group Inc lowered its 2001 earnings per share estimate for the printed circuit-board maker by 15 percent to NT$5.05 on expectations of lower demand. In four days, the stock lost 8.9 percent.
Asustek Computer Inc (華碩電腦) rose NT$10, or 6.7 percent, to NT$160 on hopes orders for its notebook computers and motherboards will rise. Intel indicated that its business from computer makers is beginning to pick up, suggesting demand is rising.
RSS