Worries over shortage of power cap rise in shares

Taiwan stocks rose as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) tracked its US-listed shares' biggest rally in more than six months after Cisco Systems Inc's better-than-expected earnings lifted the Nasdaq Composite Index to its eighth largest gain on record.

The TWSE Index rose for a third day, adding 27.75, or 0.5 percent, to 5,739.28, after earlier gaining as much as 3 percent.

On the index, 271 stocks rose, 200 fell, and 90 were unchanged. The total value of trade was NT$95.9 billion, 18 percent less than the daily three-month average. TSMC rose NT$2, or 2.4 percent, to NT$85.

Still, the gains were limited after an unexpected shortage of natural gas prompted the state-owned electricity supplier to cut power to industrial users Wednesday by up to 15 percent.

Taiwan is already suffering its worst drought in a decade, forcing government officials to ration water supplies.

"People are testing the waters after the recent rally, though psychologically, the water and power shortage are still worrying -- confidence is weak and investors are ready to buy or sell at the slightest bit of news," said Edward Su, who oversees the NT$3.9 billion (US$112.7 million) in equities at Barits Securities Investment Trust Corp (倍利投信).

He is buying computer-motherboard makers after recent declines. The TWSE Index has fallen 7.2 percent since the beginning of April, after rising 11 percent in the first quarter.

Advanced Semiconductor Engineering Inc (日月光) gained NT$0.40, or 1.3 percent, to NT$31.2. The world's second-largest chip packager said sales in April rose by more than a fifth to NT$3.7 billion from a year ago. They were little changed from sales in March.

Chunghwa Telecom Co (中華電信) fell NT$0.50, or 1 percent, to NT$51.5. Taiwan's biggest telephone company said its sales in April fell 8 percent to NT$14.8 billion (US$428 million) from NT$16.1 billion a year ago.

Inventec Co (英業達) rose NT$1.1, or 3.7 percent, to NT$30.5. The maker of notebook computers and electronic dictionaries reported that sales in April rose 7.7 percent from a year earlier to NT$5.64 billion.

Powerchip Semiconductor Corp (力晶半導體), Taiwan's second-largest computer-memory chipmaker, fell NT$0.10 cents, or 0.6 percent, to NT$17.