TW stock market 0107

14:34 07Jan2009 RTRS-Taiwan stocks extend winning streak led by HTC

* Market posts over 2-month closing high, up for fifth day
* HTC rises on smaller-than-expected profit decline
* TSMC sinks on report of declining utilisation rate

(Adds details and quote)
TAIPEI, Jan 7 (Reuters) - Taiwan stocks rose 1.32 percent on
Wednesday to a more than two-month closing high, with smartphone
maker HTC <2498.TW> leading gains after the company posted a 2008
net profit that was better than analysts had expected.
The main TAIEX share index <.TWII> ended 62.58 points higher
at 4,789.84, its strongest close since Nov. 5, 2008. The market
has now risen more than 7 percent since Dec.29, notching up a
five-session winning streak.
Turnover was moderate at T$97 billion ($2.9 billion), up from
T$81 billion a day earlier, as foreign funds gradually returned
to the domestic market after pulling out amid a worldwide
financial crisis last year.
"Foreign investors are buying back local stocks as movement
in U.S. stocks stabilises," said Tu Jin-lung, chairman of Grand
Cathay Investment Services.
Tu expected the market to test as high as 5,000 points before
the Lunar New Year holiday later this month.
Since Dec. 1, foreign funds have pumped a net T$25 billion
into Taiwan's stock market, reversing major outflows for most of
the year. For a table of foreign trading in Taiwan stocks,
double-click on [ID:nTP170358].
Shares of HTC Corp, the second-most active share by turnover,
jumped 2.06 percent to T$347, after the firm posted a 0.9 percent
fall in 2008 net profit from the prior year on Tuesday, beating
analysts' expectations. [ID:nTP36613]
"Even though HTC's profit fell, the market had pretty much
priced in all bad news," said Tu, adding that HTC shares had a
good chance of rising to T$500 this year.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's top contract chip maker, fell 2.3 percent,
after a newspaper report on Wednesday quoted JPMorgan's technology
research head as saying the chip maker's utilisation rate could
fall to as low as 30 percent in the first quarter.
The semiconductor sub-index <.TSII> gained 0.39 percent,
while the electronics sub-index <.TELI> rose 0.97 percent.
DRAM shares were mixed after Nanya Technology <2408.TW> said
on Wednesday it planned to raise the contract prices of its
chips, but that it was too early to say demand would pick up
significantly. [ID:nSEO190203]
Nanya Technology rose 1.25 percent but Powerchip <5346.TWO>,
Taiwan's top DRAM maker, fell 2.0 percent and ProMOS <5387.TWO>
lost 6.25 percent.
A local newspaper reported that capital expenditure at global
DRAM chip makers will fall 40-50 percent in 2009, as the industry
grapples with a supply glut and falling prices.

------------------------------------------------------------
Move on day 1.32 percent
Close on day 4,789.84
2009 intraday high 4,817.44
2009 intraday low 4,679.43
All time high 12,682.41 12 FEB 1990
-------------------------------------------------------------
(US$1=T$32.9)
(Reporting by Gina Chang; Editing by Jonathan Hopfner)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
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Wednesday, 07 January 2009 14:34:05RTRS [nTP36369] {EN}ENDS