PC memory makers lead TAIEX up as DRAM prices jump

Taiwan stocks rose, led by Winbond Electronics Corp (華邦電子) and other memory chipmakers, after the price of their main product rose by 4.8 percent Friday, suggesting demand for computer memory is rising.

The TAIEX gained 152.96, or 2.8 percent, to 5,551.24, bringing this year's gain to 17 percent. Within the index, 475 stocks rose and 45 fell. The index is the world's second-best performer over the last three months, up 51 percent in US dollar terms.

"I'm still positive on the market," said Simon Chao, who manages NT$800 million (US$23 million) in Taiwan equities at President Investment Trust Corp (統一投信) in Taipei. "But we're still waiting for the Christmas sales of [PCs] for evidence that computer demand is recovering." The total value of trade today was NT$140.5 billion (US$4 billion), up 14 percent from Friday.

The price for benchmark 128Mb DRAMs rose to US$2.18 Friday, up 4.8 percent from US$2.08 Thursday, according to DRAM Exchange. The 128Mb DRAM price has more than doubled from its low on Nov. 6.

Mosel Vitelic Inc (茂矽電子) rose NT$1.10, or 6.9 percent, to NT$17. Likwise, Powerchip Semiconductor Corp (力晶半導體) rose NT$1.50, or 7 percent, to NT$23. Winbond rose NT$1.60, or 6.7 percent, to NT$25.40.

Contract chipmakers gained after the Philadelphia Semiconductor Index, an index of 16 companies that design and manufacture chips, rose 1.5 percent Friday.

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), rose NT$2.50, or 2.9 percent, to NT$87.50. Its US-listed shares added 1.1 percent to US$16.95 on Friday.

Cathay Financial Holding Co (國泰金控) fell NT$2.50, or 4.2 percent, to NT$57, from its listing price of NT$59.50. The fourth financial holding company in Taiwan started trading today as the government pushes financial firms to combine in order to become more competitive.