TAIEX shows high gains after minister calls shares `cheap'

The nation's key stock index posted its biggest gain in four months on speculation the government is buying shares after the Minister of Finance yesterday said stocks are cheap. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led the advance.

The TWSE Index rose 218.49, or 4.4 percent, to 5209.97, its biggest one-day percentage gain since Jan. 16. Within the index, 453 stocks rose and just 30 fell.

Minister of Finance Yen Ching-chang (顏慶章), said yesterday at a news conference that stocks are cheap. The government pledged Monday to prop up share prices and the currency to prevent steep declines.

The government manages a NT$500 billion (US$14.9 billion) stock- market Stabilization Fund (國安基金), though it rarely comments on its trading activities. John Chen, the finance ministry's spokesman, couldn't be reached for comment.