Taiwan stocks finish firmer

11 Nov, 2006

Taiwan shares ended 0.32 percent higher on Friday as tech shares such as HTC and TSMC rose ahead of October sales results. The main TAIEX index gained 23.07 points to finish at 7,174.20, with the electronics sub-index rising 0.43 percent. The financial sub-index climbed 0.16 percent.
Turnover stood at T$85.2 billion (US $2.6 billion), easing from T$139.5 billion a day earlier. But some analysts said the market was overdone. "Good news from the tech sector was in 3Q, and now the market is adjusting as 4Q won't be a great quarter," said Primasia Securities analyst Takao Fujiki.
"Panel prices are still dropping and the handset sector is showing weakness as Motorola came out to say that 4Q won't be a great quarter." Taiwan Semiconductor Manufacturing Co Ltd, the world's biggest contract chip maker and a big exporter to the United States, rose 0.50 percent.
After the market closed, TSMC posted a gain in its October sales. Smaller rival United Microelectronics Corp advanced 1.37 percent. UMC has said October sales rose 0.13 percent from a year earlier.
In the banking sector, the subcommittee on internal affairs gave the go-ahead on Thursday for local banks to open branches in China. But some analysts were sceptical on whether the move would be approved by the governments of China and Taiwan. Smartphone maker High Tech Computer Corp (HTC) ended up 1.42 percent, reversing from losses in the previous session, ahead of its October sales result.
HTC had slumped 6.75 percent on Thursday as analysts said revenue figures could come in below expectations as the handset sector sees slower growth and the firm faced shortages from its panel suppliers. Delta Electronics rose 0.11 percent after the Economic Daily reported that a unit from the firm and European chipmaker STMicroelectronics had signed an agreement to develop solar energy systems.

Read Comments