* Construction shares rally on government plans
* Inotera limit-up amid Micron lending plans
* Asustek tumbles after Morgan Stanley downgrade
(Adds details, quote)
TAIPEI, Nov 26 (Reuters) - Taiwan stocks rose 0.12 percent on
Wednesday to a one-week closing high, as construction shares such
as Cathay Real Estate <2501.TW> rallied over the government's
plans to boost the sagging real estate industry.
The main TAIEX share index <.TWII> ended up 5.31 points at
4,271.80, giving up much of its gains from early in the session,
with the construction sub-index <.TCOI> jumping for a second day
with a 2.56 percent gain.
Turnover was light at T$45 billion ($1.4 billion), down from
Tuesday's T$57 billion.
"I think this plan (to help the real estate industry) is very
good. It shows the government's concern over the housing market,"
said Tu Jin-lung, chairman of Grand Cathay Investment Services.
The Taiwan government said on Tuesday it was crafting a
package of measures aimed at boosting the local real estate
industry, which has slumped as the economy gets drawn into the
global financial crisis. [ID:nTP69445]
The plan came in line with U.S. government programs on
Tuesday aimed at helping consumers to obtain loans for homes,
cars and credit cards. [ID:nN25276977]
Cathay Real Estate, a unit of Taiwan's top financial holding
firm Cathay Financial <2882.TW>, jumped by its daily 7 percent
limit. Huaku <2548.TW>, a major real estate developer in Taipei,
gained 4.89 percent.
Tu said he expected construction shares to continue their
gains through the end of the year.
In the DRAM industry, Inotera Memories <3474.TW> ended limit
up after it said it and sister firm Nan Ya Plastics <1303.TW>
would lend $285 million to DRAM joint venture partner Micron
Technologies
"This lending plan will only have a short-lived effect," said
Tu.
"The DRAM industry is in very bad shape and we won't see DRAM
makers improve their situation unless one of them fails. That
will help the oversupply problem," said Tu.
Adding gloom to the DRAM sector, electronic components
research firm DRAMexchange said prices for DRAM memory chips hit
new lows this month as the market remained over-supplied and PC
demand slowed. [ID:nLP414513]
The semiconductor sub-index <.TSII> fell 0.34 percent and the
electronics sub-index <.TELI> declined 0.50 percent.
HOT STOCKS
-- PC vendor Acer <2353.TW> finished flat and smaller rival
Asustek Computer <2357.TW> fell 1.49 percent after Morgan Stanley
cut its target price for Acer and downgraded its rating on
Asustek. [ID:nTP107122]
-- China Steel <2002.TW>, Taiwan's largest steel maker,
declined 2.49 percent after the firm said Tuesday it planned to
reduce output next year. [ID:nTP76792]
Minutes after the market closed, China Steel said it would
cut prices by an average of 20-25 percent in the first quarter of
2009 from the fourth quarter, its first such cut in almost three
years. [ID:nTPU000892]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.12 percent
Close on day 4,271.80
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$33.2)
(Reporting by Gina Chang; Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS]
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