Taiwan shares ended up 0.5 percent at a 7-year closing high on Thursday, as laptop PC maker Quanta's bullish forecast outweighed concerns a Wall Street slide would hurt Taiwan tech exporters. The main TAIEX rose 40.58 points to 8,355.26, recovering from a 0.6 percent loss during the session. The index has hit seven-year closing highs for the last five sessions.
Quanta Computer, the world's largest laptop PC maker, climbed 0.2 percent, helping to lift the broader electronics sub-index 0.8 percent. Quanta told Reuters it lifted its shipment growth forecast for 2007 due to brisk demand. "Investor confidence is strong in tech companies' outlook for the second half of the year," said vice president Kevin Li of Shin Kong Securities Investment Trust, which manages T$50 billion (US $1.5 billion) client assets.
"Unless there is a big sell-off on Wall Street and other major markets, Taiwan shares have more upside." Tu Jin-lung, chairman of Grand Cathay Investment Services, agreed. "The main index has upside potential of 9,000 points to the end of this year, a typical period for stocks to rise," Tu said.
Turnover eased to T$122.9 billion from T$168 billion a day earlier, its highest this year. Electronics parts maker Yageo Corp rose 1.67 percent. The firm said private equity fund Kohlberg Kravis Roberts & Co would buy US $230 million worth of convertible bonds issued by Yageo to become its single largest shareholder.
Etron Technology plunged the 7 percent daily limit after the Commercial Times reported that the IC design house was being investigated for possible involvement in insider trading.