Stocks rose yesterday, led by Taiwan Semiconductor Manufa-cturing Co (台積電), after Royal Philips Electronics NV said it will place an order with the biggest made-to-order chipmaker to make a new chip.
The TAIEX advanced 155.38, or 3.1 percent, to 5,220.44, its biggest percentage gain since May 23. Within the index, 445 stocks rose and just 26 fell. Trade at NT$79.9 billion (US$2.3 billion) was 9 percent less than this year's daily average of NT$87.5 billion.
"What we need is some positive news such as increased orders for electronic makers" for stocks to gain, said Cheng Yi-sheng, who helps manage US$47 million in Taiwan stocks at Taiwan Securities Ltd (台証證券).
Investors were also encouraged by legislative approval Tuesday night for a NT$80 billion spending package aimed at boosting the economy and the gain in US technology shares.
The NASDAQ Composite Index, 58 percent of whose market value are computer and telecommunication shares, rose 3.6 percent Tuesday. Electronic stocks make up 61 percent of the market value of the TAIEX.
TSMC rose NT$2.50, or 2.8 percent, to NT$93.50. Philips is producing samples of a new chip with TSMC and will place an order with the chipmaker in the second half of the year, said Robyn Kao, a marketing manager at Philips Electronics Industries (Taiwan) Ltd.
Computer motherboard makers rose on expectations demand is increasing after Gigabyte Technology Ltd (技嘉科技) said orders have risen in the last week. Asustek Computer Inc (華碩電腦), Taiwan's biggest motherboard maker, rose NT$3, or 1.8 percent, to NT$174. Gigabyte rose NT$6, or 6.6 percent, to NT$96.50. Micro-Star International Ltd (微星科技) rose NT$6.50, or 6.3 percent, to NT$109.50.
Chunghwa Telecom Co (中華電信) rose NT$2, or 3.3 percent, to NT$63.50. Taiwan's government will begin selling 5 percent of Chunghwa's shares through a share auction for a 10-day period beginning at 3pm today, a senior Chunghwa executive said. The government will sell 480 million shares in Taiwan's biggest phone company from June 7 to June 20 for half an hour Monday to Friday until 3:30pm, said Shen Fu-fu, the senior administrator in Chunghwa's investor relations department.
CMC Magnetics Corp (中環) rose NT$1.20, or 3 percent, to NT$41.60. The second-biggest recordable compact disc maker said sales in May rose 8 percent from April to NT$1.5 billion as CD prices rose.
Delta Electronics Inc (台達電子) rose NT$3, or 3.9 percent, to NT$80.50. Taiwan's largest maker of computer power supplies said sales in May totaled NT$2.1 billion, largely unchanged from April.
Evergreen Marine Corp (長榮海運) rose NT$0.50, or 3.1 percent, to NT$16.60. Taiwan's biggest sea-transport company is to set up a joint venture with Tesco Plc, the UK's largest supermarket chain, to build a shopping mall on land owned by the Evergreen.
GVC Corp (致福) rose NT$1, or 6.5 percent, to NT$16.50. The mobile phone maker for Ericsson AB said sales in May rose 30 percent from April to NT$1.6 billion because of rising mobile phone shipments.
Macronix International Co (旺宏) rose NT$1.30, or 3.5 percent, to NT$38.10. Taiwan's fourth-largest chipmaker by market value said in a statement distributed by Business Wire that the US International Trade Commission found the company had not infringed on a patent owned by Atmel Corp, a maker of chips used in wireless phone and computer disk drives.
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