Stocks mixed as Quanta advances

The TAIEX rose for the fifth day in six, led by Quanta Computer Inc (廣達電腦) after Taiwan's largest notebook-computer maker said it will team up with Taiwan Cellular Corp (台灣大哥大) to make mobile-phone handsets.

Leaving the broad market mixed, Realtek Semiconductor Corp (瑞昱半導體) fell after bankers and the company didn't set a price on Wednesday for a planned US$250 million share sale.

The TAIEX advanced 32.14, or 0.6 percent, to 5801.92, paring earlier gains of as much as 1.8 percent. Within the index, 242 stocks fell and 234 rose. The total value of trade yesterday was NT$141.7 billion (US$4 billion) compared to the six-month average of NT$83.8 billion.

"A lot of local investors are coming back to the market," said Tu Kuei-shiong, who manages NT$200 million (US$5.7 million) in Taiwan stocks at Lian-Shan Investment Management Co. "Trade volumes are up, which indicates people are more confident." Quanta rose NT$3.50, or 2.6 percent, to NT$140.5. Taiwan's largest notebook computer maker said it plans to form an alliance with Taiwan Cellular to make mobile phones. The two companies said they will provide more details at a press conference Monday. Taiwan Cellular was unchanged at NT$46.20.

Realtek fell NT$3, or 1.7 percent, to NT$172. The designer of integrated circuits for telecommunications and computer equipment was scheduled to price shares Wednesday after Taiwan's stock market closed, bankers involved in the transaction said. The proceeds would've been used to invest in a chip-testing facility and research on new products.

Investors said the 68 percent surge in the TAIEX since Oct. 3 is making them wary of buying shares. Realtek's shares have risen 97 percent since Oct. 3.

Some memory chipmakers gained. The price of the 128MB dynamic random access memory chip was unchanged Wednesday from Tuesday, suggesting that demand for the chips remains steady. The price of the 128MB DRAM was US$3.42 on Wednesday, according to DRAM Exchange, a market place for memory chips.

The price has more than tripled since Nov. 8. Memory chip prices are above "break-even," Goldman Sachs Group Inc said Nanya Technology Corp (南亞科技) added NT$1.90, or 4.4 percent, to NT$45.50. Promos Technologies Inc (茂德科技) rose NT$1.40, or 4.5 percent, to NT$32.40.

China Airlines Co (華航) fell NT$0.55, or 3.9 percent, to NT$13.40. The airline's president, Christine Tsung (宗才怡), was appointed Taiwan's economic minister.

China Development Financial Holding Corp (中華開發金控) fell NT$0.3, or 1.3 percent, to NT$22.10. Its unit, China Development Industrial Bank(中華開發銀行), said it sold NT$3 billion of bonds to reinforce its capital base.

Fubon Financial Holding Co (富邦金控) fell NT$0.2, or 0.6 percent, to NT$35.50. President Securities Corp (統一證券) denied a report that it plans to combine with Fubon Financial Holding's securities unit.

Ritek Corp (錸德) fell NT$0.5, or 1.3 percent, to NT$38.50. The largest maker of recordable compact discs said net income fell by more than two-thirds last year to NT$2.5 billion as profit margins slimmed because of increased competition.

Taiwan Semiconductor Manu-facturing Co (台積電) rose NT$2, or 2.3 percent, to NT$90.50. The biggest made-to-order chipmaker's US shares rose 2.3 percent to US$18.08 Wednesday. The US semiconductor equipment book-to-bill ratio was 0.78 in December, up from 0.73 in November. A book-to-bill ratio of 0.78 means that US$78 worth of new orders were received for every US$100 of shipments.