TAIEX index climbed to a 9.5-month high, led by Quanta Computer Inc (廣達電腦), Taiwan's biggest maker of notebook computers, on a report Apple Computer Inc ordered more computers from the company. Quanta rose NT$7, or 5.2 percent, to NT$142, its highest since April 19, 2000.
The TAIEX Index gained 55.46, or 1 percent, to 5865.54, its highest since March 27 last year. Three stocks rose for every one that fell. The index has surged 70 percent since Oct. 3, its lowest close since Jan. 30, 1993.
"Many stocks are still selling at reasonable valuations," said Albert King, who helps manage about NT$32 billion (US$857 million) in stocks at HSBC Asset Management Taiwan Ltd.
Stocks also advanced after the NASDAQ Composite Index rose 0.9 percent yesterday. The NASDAQ and the TAIEX Index have had a 0.7 correlation over the last 12 months, which indicates they move in tandem 70 percent of the time.
The total value of trade today was NT$190.5 billion (US$5.4 billion), the biggest since Dec. 13.
Some computer-parts makers rose on expectations the increase in memory chip prices spells better demand for computers and computer parts. The TAIEX Electronics Index has more than doubled since Oct. 3.
Acer Inc (
Memory chipmakers rallied after the price of the 128Mbit DRAM chip rose 4.4 percent to US$3.09 on Tuesday, according to DRAM Exchange, a market place for memory chips. The 128Mbit DRAM's price has nearly tripled since Nov. 8.
* Quanta Computer Inc rose NT$7, or 5.2 percent on news that Apple Computer Inc ordered more PCs from the company.
* Stocks were also boosted by the performance of the NASDAQ Composite Index, which rose 0.9 percent yesterday.
Source: bloomberg
Mosel Vitelic Inc (
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose NT$1, or 1.1 percent, to NT$91.50. William Dong, an analyst at UBS Warburg Securities Ltd, raised his 12-month target price for the stock to NT$120 from NT$100 and reiterated a "buy" recommendation on the stock. TSMC's US shares rose 3.4 percent yesterday to US$19.49.
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