twn stock 10 Dec

14:32 10Dec2008 RTRS-Techs, banks push Taiwan stocks to 1-mth high

* Week-to-date gains rise to 10 percent
* ProMOS leads DRAM shares limit up
* TSMC limit up before weak November sales
* Banks rise on interest rate cut hope, amended regulation

(Adds details and quote)
By Gina Chang
TAIPEI, Dec 10 (Reuters) - Taiwan stocks rose 4.16 percent on
Wednesday to a one-month closing high, with DRAM chip makers
leading the rally after ProMOS Technologies <5387.TWO> applied to
the government for assistance.
The main TAIEX share index <.TWII> was up 186.21 points at
4,658.87, its strongest finish since Nov 10, taking this week's
rally to 10 percent.
Turnover surged to a nearly-three-month high, at T$92.4
billion ($2.8 billion). Shares worth T$82.9 billion changed hands
in the previous session.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
ended 7-percent limit up and was the second-most actively
traded issue by turnover and volume.
The world's top contract chip maker said just as the market
was closing that its November sales dropped to T$19.3 billion
from T$30.14 billion a year ago. [ID:nTPU000935]
"Market sentiment has eased from previous panic, and bad news
didn't affect the market as it has been factored in previous
falls," said John Chiu, a vice president of Fuh Hwa Securities
Investment Trust.
"Net purchases by foreign institutions (in the past two days)
also helped boost sentiment, so investors rushed in to buy stocks
amid a market rebound."
ProMOS, the smallest of Taiwan's top three DRAM memory chip
makers, went limit up after it applied for government assistance
amid signs Taiwan may be trying to engineer a three-way tie-up to
consolidate the struggling sector. [ID:nTP40428]
"The government will probably help ProMOS as the company is
in very bad shape. But we can't tell much before seeing the
details of the government's assistance," said Chiu.
Two of ProMOS's bigger rivals, Powerchip <5346.TWO> and Nanya
Technology <2408.TW>, also went limit up.
UMC <2303.TW> , smaller rival of TSMC, gained 4.37
percent even though the company on Tuesday cut its fourth-quarter
profit margin forecast. [ID:nTPU000931]
The electronics sub-index <.TELI> rose 5.11 percent.
The financial sub-index <.TFNI> jumped 5.39 percent, staging
a 16 percent rally so far this week, amid investor expectations
the central bank would make a steep interest rate cut in a
meeting on Thursday to bolster the island's sagging economy.
Cathay Financial <2882.TW>, the island's top listed financial
holding company, ended up 6.73 percent.
Chinatrust Financial <2891.TW>, Taiwan's largest credit card
issuer, shot up 7 percent.

HOT STOCKS
-- Quanta Computer <2382.TW> and Compal Electronics
<2324.TW>, the world's top two contract laptop PC maker, gained
0.26 percent and 4.59 percent, respectively, even after Compal
said it would fall short of its 2008 shipment targets.
[ID:nTP40745]
-- LCD shares were also among the top winners, with AU
Optronics <2409.TW>, the world's No.3 LCD panel maker, and
smaller rival Chi Mei Optoelectronics <3009.TW> both finishing
limit up.
-- LCD component maker Optimax <3051.TW> went limit up after
the company approached the government for help, and its creditors
have agreed to delay for a year repayment of T$8 billion in debt,
a local newspaper reported.
-- Smartphone maker HTC Corp <2498.TW> jumped 6.65 percent,
shrugging off Tuesday's news of a target price cut by Merrill
Lynch. [ID:nTP247970]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 4.16 percent
Close on day 4,658.87
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))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
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IPO diary & data Asia earnings diary [ASIA/EQTY]
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Wednesday, 10 December 2008 14:32:25RTRS [nTP357205] {EN}ENDS