Market Update 11/28

14:11 28Nov2008 RTRS-Taiwan stocks end at 2-wk high as DRAM makers surge

* TSMC, UMC mixed after plans to cut cost
* AU, Chi Mei mixed on news Samsung will buy fewer panels
* Compal dips despite report of production in Vietnam

(Adds details, quote)
TAIPEI, Nov 28 (Reuters) - Taiwan stocks rose 0.15 percent on
Friday to a more than two-week closing high, as DRAM makers such
as Powerchip <5346.TWO> surged after saying Japanese rival Elpida
would boost its stake in their joint venture.
The main TAIEX share index <.TWII> ended 6.74 points higher
at 4,460.49, its highest close since Nov. 12, after see-sawing in
and out of positive territory throughout the session.
DRAM chip makers surged, with Powerchip and Nanya Technology
<2408.TW> both up by their 7 percent daily limit, helping lift
the electronics sub-index <.TELI> by 0.63 percent.
Powerchip's rally came after the company said Japanese rival
Elpida <6665.T> would boost its stake in their joint venture
Rexchip to 52 percent. [ID:nTP167384]
However, market sentiment remained cautious despite the
government partially lifting a ban on short-selling, with
turnover thin at T$57.8 billion ($1.7 billion) compared to
Thursday's T$62 billion.
"Lifting the ban will only give limited support to the
market, because the ban wasn't the main cause of thin trading,"
said John Chiu, a vice president of Fuh Hwa Securities Investment
Trust.
"Trading is thin simply because investors see the market will
continue to worsen and there is still uncertainty about the
outlook for the global economy," he said.
On Thursday, Taiwan's top financial regulator said it would
allow short-selling on shares which are traded higher from the
previous session's closing prices. [ID:nTP10049]
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's contract chip maker, declined 0.24 percent
but smaller rival United Microelectronics Corp (UMC) <2303.TW>
rose 2.66 percent.
Industry sources said on Friday TSMC and UMC <2303.TW> were
preparing to cut costs by up to 20 percent, as their industry
heads into a sharp downturn. [ID:nTP139342]

HOT STOCKS
-- Compal Electronics <2324.TW>, the world's No.2 contract
laptop PC maker, declined 0.58 percent even after a Vietnamese
newspaper said the Taiwan firm planned to start production in
Vietnam in the first quarter of 2009. [ID:nHAN347592]

-- Taishin Financial <2887.TW>, Taiwan's No. 3 financial
holding firm, gained 0.58 percent after the company said on
Thursday it planned to raise T$7 billion through a rights issue
to help improve its financial structure. [ID:nTP176049]

-- AU Optronics <2409.TW> gained 0.24 percent but smaller
rival Chi Mei Optoelectronics <3009.TW> dropped 1.62 percent.
Their mixed performance came after a local newspaper reported
senior managers from South Korea's Samsung <005930.KS> had
visited major LCD makers in Taiwan to tell them the Korean firm
would buy fewer panels from Taiwan due to the global economic
slowdown.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.15 percent
Close on day 4,460.49
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.3)
(Reporting by Gina Chang; Editing by Nick Macfie)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
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OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
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Friday, 28 November 2008 14:11:13RTRS [nTP39236] {EN}ENDS