TSMC leads rise in stocks

Taiwan stocks rose, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), on optimism the nation's biggest publicly traded company will say it expects profit to rise in the fourth quarter when it announces third-quarter results tomorrow.

"They'll probably say the utilization rate of their chipmaking machines is rising and the fourth quarter is looking pretty good," said Phil Chen, who manages NT$900 million (US$26 million) in stocks at Grand Cathay Securities Investment Trust Co (國泰投信).

The TAIEX rose 112.25, or 2.9 percent, to 3986.67, its highest level since Sept. 11, the day before investors in Asia reacted to the terrorist attacks in the US. The index is still 4.6 percent shy of its pre-Sept. 11 level.

Electronics stocks were the biggest group gainers, making up 86 percent of the index's advance.

Within the index, 288 stocks rose and 139 fell. The total value of trade was NT$60.3 billion (US$1.7 billion), or 30 percent more than the six-month daily average.

Chipmakers that make chips for other companies rose on optimism their fourth-quarter earnings will improve as rising orders increase the utilization rate of their machines.

TSMC, which may combine some of its older plants and sell equipment in others, according to a Chinese language newspaper, added NT$4, or the maximum-permitted 7 percent, to NT$61.50. United Microelectronics Corp (UMC, 聯電), TSMC's largest rival, rose NT$2, or 6.8 percent, to NT$31.50.

Companies that make computers for Dell Computer Corp rose on a local newspaper report that Dell, the largest maker of personal computers, will increase orders from Taiwan by as much as a fifth next year.

Quanta Computer Inc (廣達電腦) rose NT$3.50, or 4.9 percent, to NT$75. Compal Electronics Inc (仁寶電腦) rose NT$1.50, or 5.4 percent, to NT$29.30. Hon Hai Precision Industry Co (鴻海精密) rose NT$3, or 2.4 percent, to NT$126.

Asustek Computer Inc (華碩電腦) rose after a Chinese-language newspaper said that Taiwan's biggest motherboard maker may post record sales in October, citing chairman Jonney Shih (施崇堂),. The company predicts sales of 1.7 million motherboards and 70,000 notebook computers, the paper said. Asustek rose NT$7.50, or 6.3 percent, to NT$126.

Kinpo Electronics Inc (金寶電子) rose NT$0.90, or 6.7 percent, to NT$14.40. Taiwan's biggest facsimile machine maker said third-quarter profit rose 3 percent on year to NT$401 million.

Mitac International Corp (神達電腦) rose NT$0.70, or 7 percent, to NT$10.75 after local media report that the computer maker received an order from Hewlett-Packard Co for handheld personal computers. Mitac plans to ship over a million such computers in total next year, the paper said.

VIA Technologies Inc (威盛電子) rose NT$4.50, or 5.5 percent, to NT$87. The company will ship 200,000 motherboards under its own brand next month, a Chinese-language newspaper reported.