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News Center Company News
Taiwan stocks hit 2-wk high on US gains, techs up
  

Taiwan stocks rose 3.18 percent on Thursday to a two-week high, as tech shares rallied over gains on Wall Street, with PC vendors Acer and Asustek advancing even after Morgan Stanley lowered its target price on both stocks.

The main TAIEX share index had risen 135.81 points to 4,407.61 about one hour into trade, gaining for a third session and posting its highest intraday level since November 17.

Acer, the world's No.3 PC seller, and smaller rival Asustek both advanced more than 4 percent, lifting the computer and peripherals sub-index by 4.1 percent, despite Morgan Stanley cutting their target prices due to a dismal demand outlook.

"It would only be a short-term gain today. Taiwan companies will report their November sales soon, and it seems the figures won't be good," said Bevan Yeh, a senior fund manager of Prudential Financial Securities Investment Trust.

Taiwan Semiconductor Manufacturing Co (TSMC) , the world's top contract chip maker, jumped 4.23 percent and Hon Hai Precision, Taiwan's top electronic parts maker, surged 5.82 percent.

The electronics sub-index gained 3.77 percent.

Shares of Hon Hai were upgraded by JP Morgan to "neutral" from "underweight" on Thursday, as the investment bank no longer saw much downside to the company's stock from book value levels. Some investors were expecting Taiwan's central bank to cut interest rates after the Chinese government on Wednesday announced its most aggressive rate reduction in a decade.

"The central bank will likely further lower interest rates by 50 basis points, especially after the government predicted negative economic growth for Taiwan in the next three quarters," said Yeh.

Inotera Memories rallied for a second day, leading DRAM makers such as Powerchip higher. Inotera and Powerchip both went 7 percent limit up.

Inotera's jump came after the company and sister firm Nan Ya Plastics said they would lend a combined $285 million to struggling U.S. DRAM maker Micron Technologies.
release time :11/28/2008
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