TSMC leads rise on report of NEC orders

Taiwan stock rose, led by Taiwan Semiconductor Manufacturing Corp (台積電), on optimism sales may rise after a report said the biggest made-to-order chipmaker will receive an order from NEC Corp of Japan.

"TSMC's orders are a little better now," said Bryan Chiang, who manages about NT$500 million at Grand Pacific Securities Investment Trust Ltd (中信投信). "Its attitude towards the outlook for demand is a little more optimistic."

The TWSE Index rose 39.44, or 0.8 percent, to 5158.63. For the week, the index fell 1.3 percent. Within the index, 261 stocks rose, 155 fell, and 92 were unchanged.

Trade at NT$36 billion (US$1.05 billion) was the fourth lowest this year and 55 percent lower than the six-month daily average of NT$80.5 billion. Investors were reluctant to buy shares because of Thursday's earthquake and Taiwan's sliding currency against the US dollar, analysts said.

TSMC rose NT$1, or 1.1 percent, to NT$93.50. The biggest made-to-order chipmaker may receive an order in the fourth quarter to make memory chips for NEC Corp, the third-biggest chipmaker, the Chinese language media reported, without citing anyone. The report followed an earlier order this week from a unit of Sharp Corp of Japan. Nvidia Corp, the largest designer of graphics-processing chips, will increase its orders from TSMC in the third quarter.

Some banks rose on optimism parliament may reconvene to pass finance-related laws, including the Financial Holding Company Act (金融控股公司法), that may speed up mergers in the banking sector. China Development Industrial Bank (中華開發工銀), Taiwan's largest bank by market cap, rose NT$0.50, or 1.7 percent, to NT$29.90.

Chinatrust Commercial Bank (中國信託商銀), the nation's second largest, rose NT$0.60, or 2.4 percent, to NT$25.20. Hua Nan Commercial Bank (華南商銀), Taiwan's fourth biggest, rose NT$0.30, or 1.4 percent, to NT$22.

Some chipmakers rose after they said the earthquake that hit Taiwan Thursday did not damage their chipmaking equipment or affect operations. United Microelectronics Corp (聯電), the second-biggest made-to-order chipmaker, rose NT$0.50, or 1 percent, to NT$52.50. Winbond Electronics Corp (華邦電子), Taiwan's third-biggest chipmaker by market capitalization, rose NT$30, or 1 percent, to NT$30. Powerchip Semiconductor Corp (力晶半導體) rose NT$0.10, or 0.5 percent, to NT$22.40.

Chunghwa Telecom Co (中華電信) rose NT$0.50, or 0.9 percent, to NT$59. The government sold NT$66.5 million of shares in Taiwan's biggest phone company at a discount to Thursday's closing price, in the sixth of a series of auctions to sell 480 million shares, or 5 percent of the company.

Delta Electronics Inc (台達電子) rose NT$3, or 3.6 percent, to NT$86. Taiwan's biggest maker of computer power supplies, said it expects profit this year of NT$5.2 billion, or NT$5.47 per share, up 0.1 percent from last year.

Yageo Corp (國巨) rose NT$0.85, or 2.7 percent, to NT$32.70. The largest maker of parts that control the flow of electricity in circuits received approval from the Securities and Futures Commission to raise US$120 million by selling shares overseas to pay off debt and buy equipment.