tw stock 0116

14:10 16Jan2009 RTRS-Taiwan stocks off 6-week low as LCDs gain

* Market rebounds from a six-week closing low
* LCD shares jump on potential tie-ups in China
* ProMOS limit-down after selling equipment to TSMC

(Adds details and quote)
TAIPEI, Jan 16 (Reuters) - Taiwan stocks rose 0.76 percent on
Friday, with the island's top two LCD makers AU <2409.TW> and Chi
Mei <3009.TW> leading gains after saying they would sign tie-up
deals with Chinese TV makers to develop the mainland market.
The main TAIEX share index <.TWII> closed 32.93 points higher
at 4,353.70, following a positive day on Wall Street and bouncing
back from a six-week closing low in the previous session.
Turnover was thin at T$46.8 billion ($1.4 billion), lower than
Thursday's T$54 billion.
AU Optronics and smaller rival Chi Mei were up 3.61
percent and 3 percent, respectively, with the broader
optoelectronics sub-index <.TOPI> rising 2.96 percent.
Both companies said on Friday they would sign strategic
supply deals with top China TV makers, as they aim to develop
mainland sales following a slump in the key U.S. and European
markets. [ID:nTP281231]
"I think Chi Mei has a better chance than AU to develop in
China as most of its production goes to small and medium
enterprises like the ones in China," said Andrew Deng, a vice
president of Taiwan International Securities Corp.
"It's a positive development for AU and Chi Mei, but we'll
need to watch whether the deals will be fully implemented."
Deng expected the market to trade between 4,100-4,500 points
before the Lunar New Year holidays. The stock market will be
closed from Jan. 22 through Feb. 1.
However, shares of ProMOS Technologies <5387.TWO> fell by its
7 percent daily limit after the company said it was raising T$580
million through the sale of chip-making equipment to TSMC but
would incur a T$570 million loss on the sale. [ID:nTP279981]
Shares of Taiwan Semiconductor Manufacturing Co (TSMC)
<2330.TW> , the world's top contract chip maker, rose 1.71
percent, lifting the electronics sub-index <.TELI> by 1.54
percent.
ProMOS's larger rivals Powerchip <5346.TWO> and Nanya Tech
<2408.TW> both gained about 1 percent.
Around half an hour before the market closed, a government
official said Taiwan did not want any of its struggling DRAM
makers to fold, fearing such a collapse could have a ripple
effect for the sector. [ID:nTPU001045]
PC maker Asustek <2357.TW> advanced 0.49 percent even after
the firm said it could incur losses of up to T$2 billion in the
fourth quarter of 2008 due to fluctuations in foreign currency
exchange rates. [ID:nTP282399]

HOT STOCKS
-- Chunghwa Picture Tubes <2475.TW> rose 1.34 percent.
One executive with LG Display Co <034220.KS> and three from
Chunghwa Picture Tubes Ltd have agreed to plead guilty and serve
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crystal displays used in a wide variety of electronics, the
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------------------------------------------------------------
Move on day 0.76 percent
Close on day 4,353.70
2009 intraday high 4,817.44
2009 intraday low 4,313.19
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 Jacqueline Wong)
((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]
DIARIES & DATA:
IPO diary & data Asia earnings diary [ASIA/EQTY]
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Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
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Friday, 16 January 2009 14:10:53RTRS [nTP282996] {EN}ENDS