Taiwan stocks rose 0.7 percent on Saturday to touch a two-month closing high, led by shares such as Chi Mei after the LCD maker said it would buy a stake in top computer monitor maker TPV Technology. On the rare weekend trading day, the main TAIEX share index gained 64.57 points to end at 9,476.52, its highest since July 26.
The electronics sub-index rose 0.62 percent, and the bank and insurance index advanced 1.4 percent. Turnover was moderate at T$124.75 billion ($3.8 billion), lower than T$172.61 billion in the previous day. The market is open on Saturday to make up for a holiday earlier this week.
"The market is steadily going up, but there's pressure at 9,500 points, and a concern may be that the firming of the Taiwan dollar against the US dollar may affect some tech exporters," said Alvin Teng, a research manager at Sinopac Securities.
"The index is making up for some loss yesterday, but pressure has emerged as we go into the fourth quarter, since investors are closely waiting for earning reports from the US," said Michael On, managing director at Beyond Asset Management, which manages about $60 million.
Shares of Chi Mei Optoelectronics Corp rose 2.64 percent after the island's second-largest LCD maker announced a plan to buy a stake in TPV Technology. On said the index should trade at between 9,300 and 9,600 points next week, and that China-concept stocks have also been performing well amid a rise in mainland issues.
Shares of food services firm Great Wall Enterprise, which sells many of its products to China, rose by the daily 7 percent limit. The company's spun-off unit, DaChan Food (Asia) Ltd, plans to raise up to $119 million in an initial public offering in Hong Kong next week.
Quanta Computer advanced 0.78 percent, while rival Compal Electronics erased earlier gains and lost 0.41 percent after the Economic Daily News reported that the two laptop PC makers could post record output in September, with Quanta possibly surpassing 3 million units and Compal 2 million units.
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