* Main index up 1.2 pct to 1-week closing high
* Financial shares lead market to rise for second day
* LCD stocks lag market after shipment forecast cut
* UMC down before November sales
(Adds details and quotes)
By Gina Chang
TAIPEI, Dec 9 (Reuters) - Taiwan stocks rose 1.23 percent on
Tuesday to a fresh one-week closing high led by financials such
as Cathay Financial on speculation the central bank will make a
steep interest rate cut this week after poor export data.
However, LCD shares such as AU Optronics <2409.TW> and Chi
Mei <3009.TW> lagged the broader market after both lowered their
fourth-quarter forecasts.
The main TAIEX share index <.TWII> closed 54.33 points higher
at 4,472.66, its strongest finish since Dec 1. The day's gain
extended a 4.6 percent jump in the previous session.
It was the busiest session for a month, with turnover rising
to T$82.9 billion ($2.5 billion) from T$64 billion on Monday.
"We're seeing bottom for the market because it rose despite
bad news such as weak exports data," said Michael On, a manager
of Beyond Asset Management.
On expected the market to trade between 4,300-4,600 points
this week.
The market early on tracked a Wall Street rally, with
investors ignoring gloomy local economic data on Monday that
showed Taiwan's exports in November fell by an annual 23 percent,
the sharpest decline in seven years. [ID:nTP355056]
The numbers are seen tipping the central bank's hand when it
meets on Thursday to review interest rates. The bank is expected
to cut rates by 50 basis points on Thursday, which would be the
biggest cut in more than seven years.
Cathay Financial <2882.TW>, the island's largest listed
financial holding firm, gained 4.09 percent, lifting the banking
and insurance sub-index <.TFNI> 3.27 percent higher.
Shin Kong <2888.TW>, parent of Taiwan's second-largest
insurancer, rose 4.58 percent after a newspaper reported a senior
company official said he has been approached by Chinese investors
interested in working together to build golf courses in Taiwan.
Smartphone maker HTC Corp <2498.TW>, the most active shares
by turnover, jumped 4.58 percent, helping push the electronics
sub-index <.TELI> 1.65 percent higher.
Despite gains in the broader market, United Microelectronics
Corp (UMC) <2303.TW>
maker, fell 1.53 percent after JPMorgan cut its 2008 and 2009
earnings forecasts for the company. [ID:nTP355805]
UMC posted a 33.3 percent fall in November sales from a year
ago, after the market close on Tuesday, adding it still saw an
operating profit for its 2008 financial year.
LCD shares also underperformed, with AU ending flat and Chi
Mei dipping 1.26 percent.
Both companies joined other technology firms in slashing
their fourth-quarter guidance on Monday. [ID:nTP25848]
"I'm not surprised at their moves as the market already
predicted losses for AU in the fourth quarter. AU will continue
to lose money into the second quarter of next year," said Karen
Lin, a fund manager of Paradigm Asset Management.
HOT STOCKS
-- ProMOS Technologies Inc <5387.TWO>, Taiwan's third-largest
DRAM memory chip maker, fell 2.36 percent after the company said
its fourth-quarter output would fall more than previously
estimated. [ID:nTPU000928]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 1.23 percent
Close on day 4,472.66
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$33.5)
(Editing By Keiron Henderson)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
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