The nation's key stock index had its biggest advance in two weeks, led by Taiwan Semiconductor Manufacturing Co (台積電), after its US shares rose Friday and the NASDAQ had its third straight gain.
The TAIEX advanced, 196.36, or 3.5 percent, to 5,834.89, its biggest increase since Dec. 25. Within the index, 493 stocks rose and 32 fell. The total value of trade yesterday was NT$169.6 billion, the biggest trading day since Dec. 13.
The NASDAQ and the TAIEX have had a 0.7 correlation over the last 12 months, indicating they move in tandem with each other. Both indexes are dominated by electronic stocks.
"In the past week, people have taken profits but if NASDAQ goes up, people may have confidence to buy more shares in Taiwan," said Simon Chao, who manages NT$800 million in Taiwan equities at President Investment Trust Corp (
TSMC rose NT$3.50, or 3.9 percent, to NT$92.50, after reaching a 52-week high of NT$93. The biggest made-to-order chipmaker's US shares gained 3.2 percent to US$19.17 Friday.
United Microelectronics Corp (
Some computer parts makers rose on expectations that their sales and earnings will improve this year in line with better global economic growth in the second-half of 2002. Asustek Computer Inc (華碩電腦), the nation's biggest computer motherboard maker, rose NT$10, or 6.2 percent, to NT$171, a 52-week high. Hon Hai Precision Industry Co (鴻海精密), the maker of everything in a computer except chips, rose NT$11, or 6.8 percent, to NT$174.
Lite-On Electronics Inc (光寶電子), a maker of light emitting diodes, rose NT$1.50, or 5.6 percent, to NT$28.50, after reaching a 52-week high of NT$28.60. Quanta Computer Inc (廣達電腦), the biggest maker of notebook computers in Taiwan, rose NT$8.50, or 6.9 percent, to NT$132, a 52-week high.
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