Taiwan stocks rally

24 Oct, 2009

Taiwan stocks rose 0.54 percent on Friday following a rebound on Wall Street, with major PC vendors Asustek and Acer rising after the launch of the Windows 7 operating system boosted their sales outlook. The main TAIEX share index closed up 41.35 points at 7,649.28, reversing a 1.21 percent loss in the previous session.
The TAIEX wrapped up the week with a 0.84 percent fall. Turnover was thin at T$117 billion ($3.6 billion), compared with Thursday's T$140 billion and the daily average of T$124 billion over the past week. Microsoft released its much-anticipated Windows 7 operating system on Thursday, which may serve as an impetus to upgrade aging machines.
Acer Inc, the world's No 2 PC brand and netbook pioneer Asustek jumped 0.97 percent and 1.22 percent, respectively. The computer and peripheral sub-index rose 0.53 percent. Acer Chairman J.T. Wang told Reuters in an interview that the company aims to boost its revenue by more than 70 percent in the next three years, helped by low-cost netbook PCs amid an improving global economy.
AU Optronics, the world's No 3 flat-panel maker and Taiwan's biggest, jumped 0.8 percent after booking its first profit in one year. AU's smaller rival Chi Mei Optoelectronics, which is due to report its own third quarter earnings next week, rose 1.8 percent. The optoelectronics sub-index rose 0.7 percent.
Electronics parts giant Hon Hai Precision rose 2.65 percent to T$135.5 after Credit Suisse raised its target price on the stock to T$171, noting the company's revenue growth is expected to extend into next year. DRAM makers rose after South Korean peer Hynix Semiconductor swung to profit after losing for eight quarters and gave a bright outlook on the sector. Powerchip, Taiwan's top PC memory-chip maker, jumped 6.38 percent.

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