tw stock 0119

14:08 19Jan2009 RTRS-Taiwan stocks finish flat but Mediatek jumps

* Market up for a third session
* Mediatek jumps on reports of strategic alliance in China
* LCD, DRAM mixed on report of expected capex cuts

(Adds quote and details)
TAIPEI, Jan 19 (Reuters) - Taiwan stocks ended flat in thin
trading on Monday, the start of a shortened three-day trading
week before the Lunar New Year holiday, but Mediatek <2454.TW>
outperformed on a reported new alliance in China.
The main TAIEX share index <.TWII> ended up 0.02 percent or
0.66 points at 4,366.76, eking out a small gain for a third
session. Turnover was light at T$35.5 billion ($1.1 billion),
well below the daily average of T$62.9 billion this month.
"Trading volume will be thin this week as investors are
being conservative ahead of the long holidays," said Tu Jin-lung,
chairman of Grand Cathay Investment Services.
Tu expected the TAIEX to trade between 4,300-4,600 points
through Wednesday, before Taiwan's stock market closes through
Feb. 1 for the Lunar New Year holidays.
Shares of Taiwan's top chip designer Mediatek, the most
active share by turnover, jumped 5.26 percent.
Local media reported on Monday the firm was hoping to reap
big dividends from a new strategic alliance with a cellphone
testing laboratory under China's Ministry of Industry and
Information Technology.
"The alliance is good for Mediatek in the long term. It will
help Mediatek receive orders from major brands and broaden its
markets," said Nigel Lee, a portfolio manager of National
Investment Trust.
Shares of LCD and DRAM makers were mixed after a newspaper
said companies in both sectors were expected to cut their capex
this year by half or more when they start reporting fourth
quarter results this week.
AU Optronics <2409.TW>, the world's No. 3 LCD maker, gained
1.02 percent while smaller rival Chi Mei <3009.TW> lost 2.27
percent. AU will announce its fourth-quarter earnings on
Thursday.
Powerchip <5346.TWO>, Taiwan's top DRAM maker, and ProMOS
<5387.TWO> both dropped by their daily 7 percent limit. Nanya
Tech <2408.TW> shot up 5.02 percent.
UBS had initiated coverage of Powerchip and Nanya Tech with
sell ratings, saying both needed significant financial
restructuring. [ID:nSEO302408]
Smartphone maker HTC <2498.TW> rose 1.74 percent after saying
it expected double-digit 2009 revenue growth as smartphones gain
popularity despite a global downturn. [ID:nTP294449]
The electronics sub-index <.TELI> was up 0.34 percent.
------------------------------------------------------------
Move on day 0.02 percent
Close on day 4,366.76
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$33.5)
(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] 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/]
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Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
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Monday, 19 January 2009 14:08:50RTRS [nTP300767] {EN}ENDS