Taiwan stocks advanced for a third straight session on Friday as investors grew confident the tech sector's sharp tumble had bottomed out and snapped up bargains in the memory chip and display screen sectors.
The benchmark TAIEX share index edged up 23.46 points, or 0.41 percent, to close at 5,802.55. The index has risen 4.43 percent in the last three days of trade after see-sawing around 5,600 for a week.
Makers of dynamic random access memory (DRAM) chips and liquid crystal display (LCD) screens jumped in active trade as investors decided the market had fully digested signs of weakening prices in the two sectors, analysts said.
Powerchip Semiconductor, Taiwan's largest DRAM producer, was the most actively traded issue for the second straight session, rising 3.92 percent to close at T$26.50.
AU Optronics, the world's third biggest LCD panel maker, added 0.97 percent to finish at T$52.00.
The market's rise also came after Taiwan's Ministry of Economic Affairs said May export orders rose 25.9 percent from a year earlier on strong demand for electronics from China and the United States.
Steel shares retreated, however, despite sector heavyweight China Steel's raising of its 2004 profit forecast. Analysts said the announcement was positive but was long expected.
China Steel lost T$0.20, or 0.63 percent, to close at T$31.70, while smaller competitor Tung Ho Steel slipped 1.16 percent to close at T$25.50.
Overall Turnover stayed sluggish at T$75.3 billion, little changed from T$73 billion in the previous session.
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