Taiwan stocks rose for the second day in four, led by China Steel Corp (
Cathay Financial Holding Co (
The TAIEX rose 59.47, or 1 percent, to 5872.14, after rising as much as 1.8 percent. Two stocks gained for every one that fell. The index has surged 70 percent since Oct. 3, when it closed at more than an eight-and-a-half-year low, on expectations there will be a US economic recovery later this year, helping boost the nation's electronic exports.
The US Federal Reserve said the US economy, which accounts for a fifth of Taiwan exports, is beginning to recover and a report showed it had unexpected growth last quarter. Still, some investors said global technology stocks may be expensive.
"Technology valuations globally have gotten ahead of themselves," said Alexander Muromcew, who helps manage US$150 million in Asia and Australian stocks at Loomis Sayles & Co in San Francisco. "Given the uncertainty in the macroeconomic situation and earnings you've got to be careful you don't overpay for stocks."
China Steel rose NT$1, or 6.4 percent, to NT$16.70. Taiwan's largest steelmaker will cut 1,265 jobs, or 14 percent of its workforce, by 2006, to boost productivity, the Japan Metal Daily reported in an interview with Chairman Kuo Yen-tu (
Cathay Financial Holding rose NT$0.5, or 1 percent, to NT$53. The nation's biggest financial company by market value, which is adding a bank and brokerage to its stable of businesses, expects profit to rise by a tenth to NT$12 billion this year, as rising interest rates lift investment returns for the owner of the biggest Taiwanese life insurer.
Made-to-order chipmakers climbed after the widely watched Philadelphia Semiconductor Index, a price weighted index of 16 companies that are involved in the design and manufacture of chips, rose 4.2 percent Thursday.
United Microelectronics Corp (UMC, 聯電) rose NT$1.6, or 3.6 percent, to NT$46.60. Its US shares rose 3.1 percent to US$8.60 on Thursday.
The second-biggest made-to-order chipmaker may post a loss of NT$3 billion (US$83 million) in the three months to December, compared to a record profit of NT$16.7 billion, according to analysts surveyed.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose NT$0.5, or 0.6 percent, to NT$87.50. Its US shares were unchanged at US$17.67 on Thursday.
Au Optronics Corp (友達光電) fell NT$1.10, or 2.2 percent, to NT$49.40. Taiwan's biggest maker of flat-panel displays posted a loss last year as prices for its products lagged manufacturing costs during most of 2001. The Taiwan company, which went public last year, had a loss of NT$6.7 billion (US$191 million), or NT$2.34 per share, it said in a statement to the Taiwan Stock Exchange.
President Chain Store Co (統一超商) rose NT$2, or 3.3 percent, to NT$62. Taiwan's largest convenience-store operator said profit last year rose 35 percent, helped by investment gains and an expansion of products. Profit rose to NT$2.4 billion (US$69 million) from NT$1.8 billion, while sales rose 13 percent to NT$64.8 billion. The company said it expects a pre-tax profit of NT$3 billion this year.
Via Technologies Inc (威盛電子) rose NT$2.5, or 1.8 percent, to NT$143.5. The chipset seller's president, Chen Wen-chi (陳文琦), said Thursday he expects sales to rise 20 percent this year from NT$34.1 billion in 2001, as demand for desktop and notebook computers is expected to rise at least 10 percent.
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