Stocks mixed as Acer, Elitegroup rise

Taiwan's key stock index rose, led by Acer Inc (宏電) after the computer maker said yesterday it will use Palm Inc's software in its handheld devices.

The TWSE Index rose 16.82, or 0.3 percent, to 5,226.79, with the index rising as much as 0.7 percent and falling as much as 0.7 percent. Within the index, 223 shares rose and 217 fell. The total value of trade was NT$74 billion (US$2.2 billion), down 19 percent from the year-to-date average of NT$91.6 billion.

"Retail investors are buying on weakness as they are afraid of missing the next rally," said Peter Griffith, a salesman at Entrust Securities Ltd (永昌證券) in Taipei. "Foreigners have never stopped buying, they have bought every day in May except May 16."

Acer Inc rose NT$1.20 to NT$20.60. The personal-computer maker said yesterday it'll use Palm Inc's software in its branded and made-to-order handheld devices to build market share in Asia.

Chunghwa Telecom (中華電信)fell NT$1, or 1.6 percent, to NT$63.50. The Economic Daily newspaper reported, without citing sources, that the international dialing number 002 will not solely be the property of Chunghwa, making it easier for competitors to use the commonly used international dialing prefix. Government officials couldn't be reached for comment.

Elitegroup Computer Systems Ltd (精英電腦) rose NT$6.50, or 6.6 percent, to NT$104.50 after the Commercial Times newspaper reported, citing president Lin Cheng-tai (林正泰), that its subsidiary Alpha-Top Corp (致勝科技) will be the sole maker of the ibook computer for Apple Computer Inc.

Taiwan Semiconductor Manu-facturing Co (台積電) fell NT$0.50, or 0.5 percent, to NT$94, after the Philadelphia Stock Exchange Semiconductor Index, a price-weighted index of 16 companies involved in the design and manufacture of chips, dropped 5 percent yesterday, bringing its two-day decline to 6.6 percent.

VIA Technologies Inc (威盛電子) fell NT$3, or 1.1 percent, to NT$284. The chip designer may sue Nvidia Corp for using technology without authorization, the China Times Web site reported, without citing sources.