TW stock 0105

14:07 05Jan2009 RTRS-LCDs push Taiwan stocks to near 2-mth closing high

* LCD stocks jump on stabilising product prices
* Construction issues jump on hopes of more investment
* ProMOS flat on report of repayment extension

(Adds details and quote)
By Gina Chang
TAIPEI, Jan 5 (Reuters) - Taiwan stocks rose 2.33 percent on
Monday, the first trading day of 2009, to a near two-month
closing high, with LCD makers such as AU Optronics <2409.TW>
leading the rise on signs of stabilising panel prices.
The main TAIEX share index <.TWII> ended 107.09 points higher
at 4,698.31, its highest finish since Nov. 10, 2008.
The TAIEX, which closed last Thursday and Friday for the New
Year break, tracked rallies on Wall Street and other global
markets last week.
AU Optronics, the world's No. 3 LCD maker, jumped by its 7
percent daily limit. Smaller rival Chi Mei <3009.TW> rose 6.48
percent with the optoelectronics sub-index <.TOPI> up 5.76
percent.
The island's two biggest LCD makers were the market's two
most active shares by trading volume.
"Shares of LCD firms like Chi Mei were oversold. I believe
LCD stocks had reached their bottom and will continue rising,"
said Michael On, a managing director of Beyond Asset Management.
Research firm DisplaySearch said notebook PC and LCD TV panel
prices are expected to be flat in January, stopping the trend of
falling prices seen for the past six months. [ID:nTP356813]
On expected the TAIEX to rise to as high as 5,200 points
later this month, with sentiment boosted in part by the
distribution of free shopping vouchers by Taiwan's government and
by U.S. President-elect Barack Obama's inauguration.
A lift of the partial ban on short-selling on Monday helped
push the exchange's turnover to T$67 billion ($2 billion) from
T$53 billion in the previous session.
Taiwan's government imposed a ban on short-selling last
September to help boost the sagging stock market amid the global
financial crisis.
ProMOS <5387.TWO>, Taiwan's No. 3 DRAM chipmaker, ended flat
after a newspaper reported the company had received a six-month
extension from its creditors for repayment of a T$50 billion
loan. [ID:nTP74405]
The electronics sub-index <.TELI>, rose 3.16 percent.
The banking and insurance sub-index <.TFNI> was up 1.98
percent, with Cathay Financial <2882.TW>, the island's top listed
financial holding firm, rising 2.74 percent.
Most analysts anticipate that financial stocks will lead the
Taipei market higher in 2009 on expectations of the signing of a
cross-Strait financial memorandum of understanding (MOU) under
improving relations between Taiwan and China.
The construction sub-index <.TCOI> jumped 2.04 percent after
a newspaper reported insurance companies are expected to start
pumping hundreds of billions of Taiwan dollars into the local
stock and property market.

HOT STOCKS
-- Asustek <2357.TW>, the world's top motherboard maker,
gained 5.16 percent. Quanta <2382.TW> and Compal <2324.TW>, the
world's top two contract notebook makers, advanced 2.02 percent
and 0.29 percent, respectively.
Their gains came despite Citigroup downgrading Asustek and
Compal to "sell". Citi downgraded Quanta to "hold".
[ID:nTP299275]

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Move on day 2.33 percent
Close on day 4,698.31
2009 intraday high 4,778.52
2009 intraday low 4,687.57
All time high 12,682.41 12 FEB 1990
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For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.0)
(Editing by Ken Wills)