Taiwan stocks end firmer, screen shares lead rise

Taiwan stocks shrugged off losses to end stronger on Friday with screen makers like AU leading a tech advance as investors regained confidence in a second-half recovery for the sector. The TAIEX share index ended up 30.20 points, or 0.48 percent, to close at 6,272.14, reversing intraday losses of 0.75 percent that had been triggered by profit-taking after US shares fell on Fed hints that rate rises may continue.
Shares in big financial conglomerates failed to draw inspiration from the Taiwan central bank's 12.5 basis point increase to key interest rates, even though it gives them a chance to increase the spread between savings and deposit rates.
"Banks were not able to prop up the market, so the electronics sector is very important to the market's bulls," said Roger Lin, deputy research manager at Pacific Securities.
"The LCD screen sector needs to perform well if bullish investors want to continue the attack," he said. "With oil prices and interest rates moving, there are too many factors, and investors just want to go back and look at how companies are making progress in profitability."
Prices of liquid crystal display (LCD) screens have stabilised from a sharp slide, with prices of LCD televisions and computer monitors now at a level acceptable to more consumers.
AU Optronics Corp, the world's third largest display screen maker, powered 3.02 percent higher to close at T$54.50 in heavy trade. The most active issue was EU's smaller competitor Chunghwa Picture Tube, which added 1.08 percent to T$14.05.
Overall market turnover was sluggish at just T$58.18 billion, however, up slightly from T$56.68 on Thursday but well off on Wednesday's T$90.07 billion.
Banking shares took no comfort from Taiwan's rate rise. Cathy Financial Holding Co, the island's largest listed financial firm, slipped 0.63 percent to T$63.40.
Synoptic Financial Holdings managed to buck the sector's weakness and add 1.26 percent for a T$16.10 close after announcing on Thursday it would acquire International Bank of Taipei (IBT) via a share swap.
IBT advanced 0.45 percent to end the session at T$22.55.
The over-the-counter market's TAISDAQ index edged up 0.07 percent to close at 123.15, while July TAIEX index futures gained 28 points, or 0.45 percent, to 6,227.