Tech stocks help to propel TAIEX to 41-month high

Shares ended at a new 41-month high yesterday, with technology stocks leading the gains as concerns over possible foreign-exchange losses eased, dealers said.The TAIEX closed up 75.67 points, or 1.1 percent, to 6,681.52. Yesterday's finish was the highest since Sept. 27, 2000, when the index closed at 6,717.04.Gainers bested decliners 511 to 297 with 154 issues unchanged. The value of volume traded rose to NT$205.48 billion (US$6.19 billion) from NT$187.11 billion."Previously investors were worried about possible foreign-exchange losses resulting from a strong New Taiwan dollar, but such concerns have now eased as the foreign-exchange market has stabilized," said Jose Lee, deputy manager at First Taisec Securities.Technology companies mostly quote product prices in US dollars but report earnings in the New Taiwan dollar, so gains in the local currency could erode earnings. Flat panel makers rallied in active trade, on talk their first-quarter earnings will beat market expectations amid strong demand for their products. AU Optronics Corp surged 6.9 percent to NT$52.50, just short of the 7 percent daily limit, while competitor Chi Mei Optoelectronics Corp gained 3.3 percent to NT$46.70.Taiwan Semiconductor Manufacturing Co finished up 0.8 percent at NT$63.50, after its customer Broadcom gave an upbeat outlook for the first quarter. US-based Broadcom said it expected a revenue increase of 16 percent to 18 percent in the first quarter over fourth-quarter levels, on strong demand for broadband, wireless and mobile communications chips.Yageo Co, a leading resistor and capacitor maker, lost 2.2 percent to NT$18.10. On Wednesday it reported a net profit of NT$52.6 million in the fourth quarter, down from NT$226.5 million in the previous quarter.The financial subindex rose 1.4 percent on the heels of Wednesday's weakness.Financial issues have been volatile, with investors alternating between buying on the sector's strong earnings outlook and selling on overheating concerns. Cathay Financial Holding rose 1.6 percent to NT$62. Fubon Financial Holding added 1.2 percent to NT$34.40. Source: Taipei Times