UMC stocks rise, TSMC declines

The TAIEX rose for the first day in five, led by United Microelectronics Corp (UMC, 聯電), after the nation's exports fell less than expected last month, boosting optimism that overseas orders are reviving.

Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) fell on concern Morgan Stanley Capital International Inc may cut the weighting of the world's largest made-to-order chipmaker when it announces changes to its stock indexes later today.

The TAIEX rose 14.55, or 0.2 percent, to 6073.76. Within the index, 297 stocks rose and 187 fell. The total value of trade was NT$106 billion (US$3 billion), below the six-month daily average of NT$115 billion.

The index has risen 47 percent in the past five months on optimism a US economic recovery will help lift the nation out of its worst recession on record, as rising overseas orders boost sales and profits at electronics companies such as UMC.

Exports fell 2.3 percent in March from a year ago to US$11.45 billion, the government said yesterday after the market closed.

That was less than the 11.1 percent drop in the first two months of 2002.

"The economic recovery is on track," said Jeffrey Hsieh, who manages NT$410 million (US$12 million) in stocks at United Securities Investment Trust Corp (聯合投信).

"The market will trade in a box between 5,800 and 6,200 for the next month" as investors wait for more US companies' profit announcements this month.

Hon Hai Precision Industry Co (鴻海精密), Taiwan's biggest maker of computer cables and connectors, rose NT$2, or 1.3 percent, to NT$153. Benq Corp (明電), whose customers include Motorola Inc, rose NT$2, or 2.8 percent, to NT$74. UMC, the world's second-largest made-to-order chipmaker, rose 50 cents, or 1 percent, to NT$51.

TSMC fell 50 cents, or 0.6 percent, to NT$90 on concern MSCI will cut its weighting when it unveils changes to its benchmarks based on the number of a company's shares available for trading rather than the company's market value. On Wednesday, TSMC topped the list of net sales by foreign investors.

"The impact will be foreign investor selling of companies whose weighting will be affected," said Leo Sheng, who manages NT$400 million in stocks at Shinkong Investment Trust Co (新光投信).

AU Optronics Corp (友達光電) rose 50 cents, or 1 percent, to NT$50.50. The third-largest maker of flat-panel displays reported March sales almost tripled from a year ago to NT$7.1 billion.

Elitegroup Computer Systems Co (精英電腦) rose NT$4, or 2.1 percent to NT$192. Taiwan's third-largest computer motherboard maker forecasts record sales in April of more than NT$6 billion as rising notebook computer shipments counters slowing motherboard sales, the Commercial Times reported.

King Yuan Electronics Co (京元電子) rose NT$1.10, or 3.6 percent, to NT$31.30. The tester and packager of semiconductors began selling US$120 million of bonds convertible into shares.

Winbond Electronics Corp (華邦電子) rose NT$1.30, or 5.2 percent, to NT$26.40. Taiwan's second-largest computer-memory-chip maker sold a research unit and equipment to closely held Asia Pacific Microsystems Inc for a NT$137 million profit.