Taiwan stocks advanced for the fourth day in five, led by Winbond Electronics Corp (
The 128-megabit dynamic random-access memory chip (DRAM) rose to US$2.08 on Thursday from US$2 Wednesday, according to DRAM Exchange, a market place for memory chips. The 128-megabit DRAM price has risen 95 percent from its year low on Nov. 6.
"Semiconductor stocks are enjoying an upsurge because of the increase in" memory-chip prices, said Dennis Chung, who helps manage NT$3 billion (US$86 million) in Taiwan stocks at Zurich Securities Investment Trust Co.
The TAIEX rose 65.30, or 1.2 percent, to 5,398.28, up 5.7 percent for the week. Within the index, 292 stocks rose and 178 declined. The index is the world's fourth-best performer in the last three months, up 46 percent in US-dollar terms.
The total value of trade yesterday was NT$123.3 billion (US$3.5 billion), down 23 percent from Thursday.
Memory chipmakers advanced after the price of the 128-megabit DRAM chip rose. Hynix Semiconductor Inc creditors expect Micron Technology Inc to make an offer next month as the two companies proceed with talks for a tie-up, according to a statement from Hynix's lenders. A merger between the two companies may trim supply and boost memory-chip prices further.
Mosel Vitelic Inc (茂矽電子) rose NT$1, or 6.7 percent, to NT$15.90. Nanya Technology Corp (南亞科技) rose NT$2.20, or 6.9 percent, to NT$34.20. Powerchip Semiconductor Corp (力晶半導體) rose NT$1.40, or 7 percent, to NT$21.50. Winbond rose NT$1.50, or 6.7 percent, to NT$23.80.
Made-to-order chipmakers advanced after the widely watched Philadelphia Semiconductor Index, an index of 16 companies that design and manufacture chips, rose 1.9 percent yesterday.
Taiwan Semiconductor Man-ufacturing Co (TSMC,
Shares prices for Taiwan's banks fell. Many companies are unable to meet their loan repayments with the economy in recession. Taiwan's central bank expects the economy to contract 2.3 percent this year.
This means that banks' non-performing loans, that some analysts estimate to be more than a fifth of total loans, will rise further, crimping earnings as lenders are forced to write off more credits.
Chinatrust Commercial Bank (
Chang Hwa Commercial Bank (彰化銀行), the second-biggest listed lender by assets, fell NT$0.45, or 3.1 percent, to NT$14.10. First Commercial Bank (第一銀行), the biggest listed lender by assets, fell NT$0.90, or 4.2 percent, to NT$20.80.
China Development Financial Holding Corp (
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