Taiwan stocks nudge up, tech majors aided by Intel

Taiwan stocks nudged higher on Friday as big technology shares like TSMC took comfort from upbeat guidance from Intel Corp as well as gains in US counterparts after a drop in oil prices. The TAIEX share index finished with a slim 0.19 percent gain to 6,204.23, and has tread water since notching up a 10-month intraday high on March 2 as investors wait for reasons to attack higher.
Taiwan Semiconductor Manufacturing Co (TSMC) added 0.96 percent to close at T$52.50 after chip giant Intel raised the mid-point of its first quarter revenue forecast and hiked its profit margin target on Thursday.
"US firms' expectations for the first and second quarter are slowly emerging, and consumer electronics is looking better," said Roger Lin, deputy research manager at Pacific Securities.
Lin added that the CeBIT technology fair in Germany, the world's biggest tech and telecoms trade show, was also creating buzz for mobile phones and other handheld gadgets, helping Taiwan component makers supplying the sector.
"This wave of gains will rely on electronics to be the mainstay," Lin said. "Most industrials lack momentum unless they offer high dividend yields."
Turnover was moderate at T$80.23 billion, slipping from Thursday's T$88.92 billion.
Industrial shares were indeed sluggish, with petrochemical giant Formosa Plastics off 0.66 percent and top domestic steelmaker China Steel unchanged at T$35.70.
While big-capitalisation technology shares edged higher, smaller firms supplying parts for mobile devices showed much stronger gains.
Microelectronics Technology Inc, which makes GPS navigation devices and telecommunications components, jumped 4.5 percent to close the day at T$15.10.
Display screen makers faced a back-and-forth session, with only smaller manufacturers ending higher on news that world number two player LG.Philips LCD Co Ltd plans to raise prices for 17-inch screens.
AU Optronics and Chi Mei Optoelectronics, the world's third and fourth largest screen makers, closed unchanged but Chunghwa Picture Tube rose 3.08 percent. The over-the-counter market's TAISDAQ index added 0.11 percent to 123.66, while March TAIEX index futures edged up 40 points, or 0.65 percent, to close at 6,207, switching to a slim premium over the spot price.