TWN Market Update: February 2009

Friday, February 27, 2009

twn dlr 0227

16:53 27Feb09 RTRS-Taiwan dollar at 6-yr low on econ fears, outflows * Taiwan dollar weakens to six-year low, breaks T$35 barrier * Weighed down by fund outflows, regional peers and economy * Exporters fail to provide support (Updates values, adds details) TAIPEI, Feb 27 (Reuters) - The Taiwan dollar weakened to a more than six-year closing low on Friday, briefly breaking the key T$35 barrier, as record jobless figures and foreign fund outflows weighed on the local currency. The Taiwan dollar broke through the psychological T$35 to the U.S. dollar barrier in afternoon trade, but later pared some of those losses to close the session at T$34.950, its weakest close since Oct. 16, 2002. It was weaker than Thursday's close of T$34.850. Volume on the main Taipei Forex Inc exchange was moderate at $1.034 billion, higher than Thursday's $765 million. "Although the central bank says market forces should decide the strength of the Taiwan dollar, it cannot sit idly by as other regional currencies depreciate," said a dealer in Taipei. The central bank, which keeps the Taiwan dollar in a managed float, has been intervening in the foreign exchange market to depreciate the local currency. Such a move helps makes locally produced goods manufactured on Taiwan dollar costs cheaper in overseas markets. Other economies in the region have also been adopting similar policies, with the South Korean won hitting an 11-year low on Friday. [ID:nSEO210948] Taiwan's January seasonally adjusted jobless rate rose to a record high of 5.33 percent as the island suffers from possibly its longest recession and ignites fears of a protracted slowdown. [ID:nTP48392] Foreign funds sold a net total of T$1.64 billion ($46 million) worth of shares on Friday, bringing their total net sale this month to T$14.97 billion. Exporters, who are usually active at the end of the month, failed to provide the usual support for the Taiwan dollar as fund inflows slowed to a trickle amid falling demand for the island's exports in overseas markets, dealers said. On the smaller Cosmos exchange , the Taiwan dollar closed at T$34.935 compared to Thursday's close of T$34.846. (Reporting by Kelvin Soh and Jeanny Kao) ((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
For Related News, Double Click on one of these codes:[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Friday, 27 February 2009 16:53:25RTRS [nTP236879] {EN}ENDS

Thursday, February 26, 2009

twn mkt 0227

14:10 27Feb09 RTRS-Taiwan stocks hit 2-week closing high, DRAMs up * Market rises for 3rd day on DRAM, tourism issues * Chunghwa Picture Tubes down on report of seeking state aid * Cathay Fin drops after downgrade by JP Morgan (Adds details and quote) TAIPEI, Feb 27 (Reuters) - Taiwan stocks rose 0.85 percent on Friday to a two-week closing high, with DRAM shares including Powerchip <5346.two> rallying before Taiwan's government announces plans to overhaul the sagging industry next week. The main TAIEX share index <.TWII> closed 38.59 points higher at 4,557.15, logging its strongest finish since Feb. 16 and extending a 2 percent rise in the previous two sessions. Turnover was light at T$68.8 billion ($2 billion), but higher than Thursday's T$58.8 billion. Shares of Powerchip, Taiwan's top DRAM company, jumped 3.66 percent, and smaller rival Nanya Tech <2408.tw> rose 0.31 percent and ProMOS <5387.two> jumped by its 7 percent daily limit. The semiconductor sub-index <.TSII> rose 1.04 percent. "A consolidation will be positive for the DRAM industry in the longer term, but DRAM shares will remain volatile as there are still many problems in the DRAM sector." said John Chiu, a vice president of Fuh Hwa Securities Investment Trust. Taiwan's economics ministry said earlier this week it would postpone to next week the unveiling of a plan to overhaul the island's DRAM sector. [ID:nTP50297] Local media cited Japanese reports on Friday that Japan's Elpida <6665.t> will announce consolidation with Powerchip, Rexchip and ProMOS <5387.two> as soon as next week. The electronics sub-index <.TELI> was up 1.4 percent. However, LCD maker Chunghwa Picture Tubes <2475.tw> dropped by its 7 percent daily limit. Its losses came after a local newspaper cited a senior company executive as saying that the firm is seeking government assistance in getting a one-year extension of a T$15 billion loan that will mature this year. "Investors have been worried that more industries will need state support after DRAM," said Alex Huang, a vice president of Mega International Securities. "But the situations between Chunghwa Picture Tubes and ProMOS are very different. Chunghwa still has cash at hand, so investors shouldn't be too worried about this company," said Huang, who expected the market to trade between 4,500-4,650 next week. AU Optronics <2409.tw> and Chi Mei <3009.tw>, Taiwan's top two flat panel makers, gained 2.16 percent and 0.44 percent, respectively. Another big winner was the tourism sub-index <.THOI>, which rose 1 percent after China pledged to try to increase the number of Chinese tourists visiting Taiwan. [ID:nTP127432] Hotel operators Formosa Hotel <2707.tw> and Leofoo Development Co <2705.tw> gained 0.73 percent and 2.62 percent, respectively. Cathay Financial <2882.tw>, Taiwan's largest listed financial holding firm, dropped 1.58 percent after being downgraded by JP Morgan to "underweight." [nSEO207897] Shin Kong Financial <2888.tw> dropped 4 percent after a newspaper reported the firm said its insurance affiliate Shin Kong Life, Taiwan's No. 3 life insurer, will not rule out selling some of its real estate assets. The financial sub-index <.TFNI> edged up 0.12 percent. HOT STOCKS -- Hon Hai <2317.tw>, the island's top electronics gear maker, rose 2.05 percent. The world's top contract notebook PC maker Quanta <2382.tw> fell 0.7 percent while smaller rival Compal <2324.tw> was 3.59 percent higher. Mobile phone giant Nokia's entry to the laptop PC market could benefit contract manufacturers such as Compal, Quanta and Hon Hai, a local newspaper reported. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.85 percent Close on day 4,557.15 2009 intraday high 4,817.44 2009 intraday low 4,164.19 All time high 12,682.41 12
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tw mkt 0226

14:13 26Feb09 RTRS-Compal leads Taiwan stocks to 1-week closing high * Compal leads tech shares higher after upbeat Q2 outlook * Financials down despite report of gov't injection plan * Auto stocks jump on China hope (Adds details and quote) TAIPEI, Feb 26 (Reuters) - Taiwan stocks rose 0.55 percent on Thursday to a one-week closing high, led by contract laptop maker Compal Electronics <2324.tw> after it gave an upbeat assessment on its prospects for the second quarter. The main TAIEX share index <.TWII> ended up 24.82 points at 4,518.56, its strongest close since Feb. 19 and extending a 1.4 percent gain in the previous session. Turnover was light at T$58.8 billion ($1.7 billion), down from Wednesday's T$71 billion. Compal Electronics, the world's second-largest contract laptop PC maker, rose 2.63 percent after issuing an upbeat outlook for the second quarter, as clients stock up from depressed inventory levels. [ID:nTP366447] "Compal's shipment and growth now seem to be better than Quanta," said Andrew Deng, a vice president of Taiwan International Securities, but added the likelihood it would rise further was limited. Compal's larger rival Quanta <2382.tw> rose 0.84 percent while the computer and peripherals sub-index <.TCPI> gained 1.49 percent. Semiconductor shares shrugged off a statement by research firm Gartner that said global semiconductor revenue, hit by the economic downturn, is expected to fall 24 percent to $194.5 billion in 2009. [ID:nLP825363] The world's top contract chip maker, TSMC <2330.tw> , was up 0.67 percent, lifting the broader semiconductor sub-index <.TSII> 0.89 percent higher. However, the financial sub-index <.TFNI> ended down 0.74 percent, surrendering early gains as investors took profits from its 4 percent jump in the previous session. The Financial Supervisory Commission is considering a plan for the government to inject cash or buy shares of banks to ensure the stability of the financial system, a local newspaper said on Thursday. "Despite the positive news, most investors including foreign institutions remained pessimistic about the outlook for local financial companies. Any rise of their shares will likely be short-lived," said Deng. Cathay Financial <2882.tw>, the island's top listed financial holding firm, lost 2.23 percent. Shin Kong Financial <2888.tw>, parent of the island's No.3 life insurer, fell 0.13 percent ahead of its fourth-quarter investor conference later on Thursday. HOT STOCKS -- The automobile sub-index <.TAUI>, the biggest winner of the day, jumped 3.04 percent, boosted by Chinese government's $732 million subsidy programme that aimed to aid purchases of autos in rural areas. [ID:nSHA366726] Shares of
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Wednesday, February 25, 2009

twn dlr 0225.

17:06 25Feb09 RTRS-Taiwan dollar rises on exporters, stock gains * Taiwan dollar firms on stock market rise, exporter deals * Dealers expect currency to depreciate again (Updates through close) TAIPEI, Feb 25 (Reuters) - The Taiwan dollar firmed on Wednesday, helped by exporters' purchases and a domestic stock market rise, but many investors stayed on the sidelines on fears that the local currency would change course and weaken again. The Taiwan dollar rose to an intraday high of T$34.646 against the U.S. dollar, but pared some of its early gains to end at T$34.747, up from Tuesday's close of T$34.797. Volume on the main Taipei Forex Inc exchange was thin at $627 million, lower than Tuesday's $722 million. "There were some exporters trading in the early session, but the Taiwan dollar followed the South Korean won to trim some gains in the afternoon," said a dealer at a local bank. Exporters usually trade near the end of the month for cash needs at home. The won erased most of its early gains on Wednesday as investors focused on indications of change in the government's stance on the foreign exchange markets. [ID:nSEO59279] "The stock market gains also lifted sentiment today," said another dealer in Taipei. Taiwan stocks <.TWII> hit a one-week closing high on Wednesday after a Wall Street rally overnight. Despite the day's advance, the Taiwan dollar is likely to trade in a tight range between T$34.5-T$34.8 in the near term and eventually resume its downward trend to test around T$35 due to the bleak economic outlook, dealers said. On the smaller Cosmos exchange , the Taiwan dollar firmed to T$34.736 from Tuesday's close of T$34.770. (Reporting by Gina Chang; Editing by Jonathan Hopfner) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.come@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
For Related News, Double Click on one of these codes:[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Wednesday, 25 February 2009 17:06:32RTRS [nTP63706] {EN}ENDS

twn stock 0225

14:10 25Feb09 RTRS-Taiwan stocks hit 1-wk closing high; Powerchip up * Market tracks U.S. rally to hit one-week closing high * Powerchip, ProMOS limit-up on report of consolidation * Financial shares surge as investors snap up beaten stocks (Adds details and quote) TAIPEI, Feb 25 (Reuters) - Taiwan stocks rose 1.43 percent on Wednesday to a one-week closing high, with DRAM makers including Powerchip <5346.two> jumping after a report that Japan's Elpida <6665.t> would lead the consolidation of Taiwan's DRAM industry. The main TAIEX share index <.TWII> finished 63.56 points higher at 4,493.74, its strongest close since Feb. 19, boosted by a Wall Street rally that saw the S&P 500 <.SPX> jump 4 percent. Turnover was light at T$71.1 billion ($2 billion), but higher than T$56.5 billion in the previous session. Powerchip, Taiwan's top DRAM semiconductor maker, and smaller rival ProMOS <5387.two> both rose by almost their 7 percent daily limits. But Nanya Tech <2408.tw>, Taiwan's No.2 DRAM maker, fell 1.8 percent. The semiconductor sub-index <.TSII> was up 1.02 percent. "We need more concrete details from the consolidation plan to know the future direction of Taiwan's DRAM industry," said Karen Lin, a fund manager of Paradigm Asset Management. "It would be better if the consolidation involves the whole industry to give up its excessive capacity. The failure of Qimonda alone is not enough for a reduction of the industry's total output." Lin expected the market to trade between 4,200-4,700 points for the rest of the week. Japan's Elpida is likely to lead the consolidation of Taiwan's struggling DRAM sector, as a senior company executive arrives to meet with the island's vice president on Wednesday, a local newspaper reported. Taiwan's economics ministry told Reuters late on Tuesday that it would postpone to next week the unveiling of a plan to overhaul the DRAM sector, as it needs more time to consider suggestions from various quarters. [ID:nTP50297] Shares of ProMOS recouped early losses after the cash-strapped firm proposed earlier this week an offer to buy back bonds at a heavy discount from for investors. [ID:nTP312528] Investors ignored dismal data on Tuesday that showed Taiwan's January export orders dropped a record 42 percent from a year earlier. [ID:nSP396732] Taiwan Semiconductor Manufacturing Co (TSMC) <2330.tw>, the world's top contract chip maker, gained 1.59 percent, lifting the electronics sub-index <.TELI> 1.13 percent higher. TSMC's ADR shot up 4.09 percent in U.S. trading overnight. The financial sub-index <.TFNI> jumped 4.26 percent, led by Cathay Financial <2882.tw>, the island's top listed financial holding firm, which advanced 1.22 percent. The rally came as investors snapped up beaten-down financial stocks, which had been weighed by rising bad debts amid the deepening economic recession and concerns that lower interest rates would hurt company profits. The financial sub-index had dropped 16.5
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Tuesday, February 24, 2009

twn dlr 0224

16:56 24Feb09 RTRS-Taiwan dollar weakens on Jan export orders, c.bank (Updates closing prices) TAIPEI, Feb 24 (Reuters) - The Taiwan dollar weakened on Tuesday as the island's dismal export orders in January prompted investors to sell local currencies, with the central bank intervening to push the currency even lower. The Taiwan dollar had been trading lower throughout the session. It dropped to a low of T$34.80 against the U.S. dollar shortly before ending at T$34.797, weakening from Monday's close of T$34.628. Volume on the main Taipei Forex Inc exchange was thin at $722 million, sharply lower than $1.027 billion a day earlier. "Some foreign banks bought the Taiwan dollar yesterday but sold the local currency today after seeing the gloomy export orders," said a dealer in Taipei. "The central bank also sold the Taiwan dollar near the market close." On Monday, the local currency rebounded from a near six-year intraday low after falling for 12 consecutive sessions previously, as financial institutions adjusted their positions after recent declines and on exporter deals. Government data on Tuesday showed that Taiwan's export orders, an indicator of the strength of global tech products and Asia's actual exports in coming months, fell by a record pace in January. [ID:nSP396732] The Taiwan dollar has fallen 6 percent so far since the beginning of this year, as the central bank tried to keep the local currency weak to support the island's sagging exports. Dealers said that unless export data improves, the Taiwan dollar will continue its downward trend near T$35. But the central bank is unlikely to let the currency weaken too quickly following complaints from some importers. A weaker Taiwan dollar will raise costs for importers when they convert their local currencies to the U.S. dollar for purchases overseas. In the non-deliverable forwards market, six-month NDFs narrowed to -0.070/-0.020 from -0.100/-0.050 in the previous session. That indicated investors bet the local currency will firm by a smaller degree in six months than previously expected. On the smaller Cosmos exchange , the Taiwan dollar weakened to T$34.770, compared with Monday's close of T$34.600. (Reporting by Gina Chang; Editing by Ken Wills) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.come@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
For Related News, Double Click on one of these codes:[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Tuesday, 24 February 2009 16:56:56RTRS [nTP262781] {EN}ENDS

Monday, February 23, 2009

twn stock 0224

14:09 24Feb09 RTRS-Taiwan stocks at over 2-wk closing low, techs fall * Asustek, Acer fall after Morgan Stanley cuts PC forecast * TSMC down despite positive comments * LCD shares rise on report of rush orders (Adds details and quote) TAIPEI, Feb 24 (Reuters) - Taiwan stocks fell 1.06 percent on Tuesday to a more than two-week closing low, as a Wall Street sell-off and gloomy PC market views by Morgan Stanley pressured computer shares such as Acer <2353.tw> and Asustek <2357.tw>. The main TAIEX share index <.TWII> closed down 47.60 points at 4,430.18, its lowest finish since Feb. 5. Turnover was light at T$56.5 billion ($1.6 billion), slightly lower than Monday's T$57 billion. "The market tracked Wall Street losses, but outperformed its Asian peers. It suggests that investors, though still conservative, have become less pessimistic than before," said Andrew Deng, a vice president of Taiwan International Securities. Deng expected the market to trade between 4,200-4,600 points this week. The computer and peripherals sub-index <.TCPI> declined 1.77 percent after Morgan Stanley lowered its PC unit and average-selling-price forecasts for 2009 and 2010, citing weaker-than-expected demand and cannibalisation from netbooks. [ID:nBNG290257] Shares of Asustek fell 2.65 percent, while shares of Acer, the world's No.3 PC vendor, ended down 1.1 percent. Both Asustek and Acer sell popular netbook laptops. "Although netbooks will more or less pressure the sales of their other products, it's not bad news overall," said Alex Huang, a vice president of Mega International Securities. "The netbook market is one of the few in which Taiwan's companies can play a leading role." Shares of Taiwan Semiconductor Manufacturing Co (TSMC) <2330.tw> , the world's top chip maker, dropped 2.2 percent even after media cited the company's chairman as saying the semiconductor industry had neared its bottom. [nTP224728] The semiconductor sub-index <.TSII> and the electronics sub-index <.TELI> both finished down more than 1 percent. But LCD shares defied the weakness after a local newspaper said home electronics makers in China had approached top LCD makers AU Optronics <2409.tw> and Chi Mei <3009.tw> with rush orders as they face a shortage in display panels. Shares of AU and Chi Mei gained 0.79 percent and 0.88 percent, respectively. HOT STOCKS -- ProMOS Technologies Inc <5387.two>, Taiwan's No.3 DRAM maker, dropped by its 7 percent daily limit. The firm said on Monday it expects holders of its convertible bonds to accept its offer to buy them back for as little as 10 percent of their face value. [ID:nTP312528] -- Taiwan's ASE <2311.tw>, the world's top chip packager, slid 4 percent. The firm has signed a memorandum of understanding with Advanced Microelectronics Products Inc (AMPI) <6287.two> to form a strategic alliance to provide better services to clients. [ID:nTP324801] AMPI jumped by its 7 percent daily limit. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day -1.06 percent Close on day 4,430.18 2009 intraday high 4,817.44 2009 intraday low 4,164.19 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$34.7) (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.
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1/23 stock mkt

13:57 23Feb09 RTRS-Taiwan stocks end higher as DRAMs, TSMC jump * Powerchip, Nanya Tech up on reported industry consolidation * TSMC and HTC recoup early losses on state buying * LCD shares fall on report of China rival * China Life up on news of a deal with Prudential Plc (Adds details and quote) TAIPEI, Feb 23 (Reuters) - Taiwan stocks finished 0.92 percent higher on Monday, with DRAM makers such as Powerchip <5346.two> jumping after a report that the government will present a consolidation plan for the battered industry this week. The main TAIEX share index <.TWII> closed up 40.84 points at 4,477.78. Turnover was light at T$57.4 billion ($1.7 billion), lower than T$60 billion in the previous session. The market tracked Wall Street lower at the open but reversed course after half an hour as government funds stepped in to prop up the market by buying technology shares such as TSMC <2330.tw> and HTC <2498.tw>, analysts said. Shares of Taiwan Semiconductor Manufacturing Co (TSMC) , the world's top contract chip maker, rose 2.51 percent and smartphone maker HTC jumped 3.24 percent. The electronics sub-index <.TELI> was up 1.91 percent. Taiwan's two biggest DRAM makers, Powerchip and Nanya Tech <2408.tw>, jumped 4.83 percent and 5.83 percent, respectively. But smaller rival ProMOS <5387.two> dropped by its 7 percent daily limit. "The government will be able to help DRAM makers in the short term. But the sector's long-term outlook is still gloomy as the economy weakens and the problem of oversupply remains," said Michael On, a managing director of Beyond Asset Management. A local newspaper said on Monday the economics ministry will submit its report on consolidation within the struggling DRAM industry to Premier Liu Chao-shiuan on Wednesday or Thursday. Another bright spot was China Life <2823.tw>. The insurer rose 1.76 percent after saying it would buy most of Prudential Plc's local insurance business, with the UK firm taking about a 10 percent stake in China Life. [ID:nTP221645] However, the financial sub-index <.TFNI> dropped 1.94 percent, as sharp declines of U.S. banking shares weighed and due to concerns that lower interest rates will further hurt company profits. Taiwan's central bank made an emergency rate cut last week, lowering the interest rate to a record low after Taiwan's economy posted a record annual decline in the fourth quarter. LCD shares were mixed after a newspaper cited a senior Chi Mei executive as saying the industry should be concerned by Japanese electronics maker Sharp Corp's <6753.t> moves to work with its Chinese rival, SVA, for joint production of LCD displays in China. The optoelectronics sub-index <.TOPI> was up 0.79 percent but AU Optronics <2409.tw>, Taiwan's top flat panel maker, fell 0.78 percent. Smaller rival Chi Mei <3009.tw> gained 0.89 percent. HOT STOCKS -- Waterland Financial <2889.tw>, Taiwan's smallest financial holding company by assets, has approached Cathay Financial <2882.tw> to discuss merger opportunities, a newspaper cited market rumours on Monday. Cathay Financial, Taiwan's top listed financial holding firm, lost 3.16 percent while Waterland Financial ended down 0.78 percent. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.92 percent Close on day 4,477.78 2009 intraday high 4,817.44 2009 intraday low 4,164.19 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$34.7) (Reporting by Gina Chang; Editing by Ken Wills) ((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] U.S. earnings diary [RESF/US] European diary [WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts TOP NEWS: For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks <0#.index> Currency rates Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225> FTSE 100 <.FTSE> Debt <0#usbmk=> Taiwan dollar LME price overview TAIWAN MARKET: Taiwan equity mkt TAIEX <.TWII><.TV.TW> Other indices <0#.inx.tw> TAISDAQ <.TWOII><.TV.TWO> TAIMEX Taiwan index futures <0#tx:> MSCI Taiwan index <.MSTW> SIMEX Taiwan index futures <0#stw:> FTSE TW50 index <.FTSETW50> Keywords: MARKETS TAIWAN STOCKS
For Related News, Double Click on one of these codes:[E] [Z] [MF] [PSC] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [STX] [EMRG] [LEN] [RTRS] [.TW] [.TWII] [.MSTW] For Relevant Price Information, Double Click on one of these codes:<.TWII> <.MSTW> Monday, 23 February 2009 13:57:20RTRS [nTP312341] {EN}ENDS

1/23 TWD

17:05 23Feb09 RTRS-Taiwan dollar rebounds from near 6-year low (Adds close, quotes) TAIPEI, Feb 23 (Reuters) - The Taiwan dollar ended sharply higher on Monday, off a near six-year intraday low as financial institutions adjusted their positions after recent falls in the local currency and on exporters' deals. The Taiwan dollar rose to a high of T$34.6 against the U.S. dollar minutes before closing at T$34.628, its strongest finish since Feb. 17. Dealers said there was some light U.S. dollar-buying intervention by the central bank just before the market closed. On Friday, the currency ended at T$34.8, its weakest close in nearly six years, which had been its 12th straight session of falls. "Some foreign investors and banks took profits after the Taiwan dollar's recent decline," said a dealer in Taipei. The Taiwan dollar has lost about 5 percent of its value since the beginning of the year as worries over the island's economic health weighed on the local currency. But dealers said the local currency would still be on a downward trend, likely weakening to T$35 in coming weeks. The day's gain was further boosted by exporters' purchases of the Taiwan dollar. Exporters prefer a weaker Taiwan dollar as they can exchange their U.S. dollar earnings to more of the local currency. Importers, however, were not particularly active during the session even after the central bank on Monday urged importers to hedge their foreign exchange positions. [ID:nTP316898] Volume on the main Taipei Forex Inc exchange was moderate at $1.027 billion, sharply higher than Friday's $680 million. In the non-deliverable forwards market, six-month NDFs were quoted at -0.100/-0.050, wider than -0.050/-0.010 in the previous session, meaning investors bet the Taiwan dollar will strengthen more than earlier expectations in half a year. On the smaller Cosmos exchange , the Taiwan dollar rose to T$34.600 compared to Friday's close of T$34.800. (Reporting by Lee Chyen Yee and Gina Chang; Editing by Nick Macfie) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.come@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/
For Related News, Double Click on one of these codes:[M] [T] [Z] [MF] [RNP] [DNP] [PTD] [PMF] [TW] [ASIA] [FRX] [EMRG] [LEN] [RTRS] [TWD/] [TWD=TP] For Relevant Price Information, Double Click on one of these codes: Monday, 23 February 2009 17:05:41RTRS [nTP322117] {EN}ENDS

Friday, February 20, 2009

twn dlr 0220

16:47 20Feb09 RTRS-Taiwan dlr near 6-yr low on econ fears, trade thin
(Updates closing values, adds details)
TAIPEI, Feb 20 (Reuters) - The Taiwan dollar extended losses on Friday to hit a near six-year low, weighed down by losses in local stocks and dragged down by a fall in South Korea's won, while local currency buyers waited for a better price.
The Taiwan dollar , which has been weakening over the past two weeks, hit a low of T$34.850 in afternoon trade but later pared some losses to close at T$34.808, compared to T$35.675 a day earlier. Friday's final price was the weakest since April 30, 2003.
Dealers also cautioned that the Taiwan dollar could weaken even further before receiving support at the key psychological T$35 level, where exporters would then step in to support the currency by buying it with U.S. dollars for cash needs at home.
"There's really a crisis of confidence right now," said a dealer in Taipei. "Couple that with all the other Asian currencies that are falling, and it's obvious the trend will carry on for a while more."
Volume on the main Taipei Forex Inc exchange was thin at $680 million, lower than Thursday's $730 million. Dealers said few investors were willing to enter the market without a real need.
"Exporters don't want to come in because they think it'll weaken further, importers don't want to trade because they feel the Taiwan dollar is too weak now, so volume has fallen by quite a lot," said another dealer in Taipei.
Dealers also said the central bank did not intervene much although it has been buying U.S. dollars actively over the past month or so to help the Taiwan dollar weaken.
The Taiwan dollar has lost nearly 6 percent of its value this year as the central bank seeks to increase the competitiveness of Taiwan's high-tech exports.
On the smaller Cosmos exchange , the Taiwan dollar was trading for T$34.800, compared to Thursday's close of T$34.663.
(Reporting by Kelvin Soh and Roger Tung; Editing by Ken Wills)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com))
Keywords: MARKETS TAIWAN CURRENCY/

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Friday, 20 February 2009 16:47:41RTRS [nTP226640] {EN}ENDS

Thursday, February 19, 2009

tw stock 0220

14:09 20Feb09 RTRS-Tech shares drag Taiwan stocks to 2-wk closing low
* Market ends two-day gains on tech losses
* TSMC trades lower despite upbeat outlook
* DRAM shares mixed after government official comment

(Adds details and quote)
TAIPEI, Feb 20 (Reuters) - Taiwan stocks ended down 2.03
percent on Friday to a two-week closing low, as investors sold
shares after a Wall Street sell-off and ignored a report citing
upbeat comments by top contract chipmaker TSMC <2330.TW>.
The main TAIEX share index <.TWII> closed 91.93 points lower
at 4,436.94, its weakest finish since Feb. 5. The market had
climbed 0.8 percent in the previous two sessions.
Turnover was light at T$59.9 billion ($1.7 billion), lower
than T$70.5 billion a day earlier.
TSMC , the world's top contract chip maker, lost 3.3
percent even after a newspaper said on Friday the firm believed
its operations had reached a low point and could rebound soon as
it had already secured a number of orders in the current quarter.
A top Taiwan fund manager also said on Thursday that
electronic component makers and designers are poised to benefit
this year from an early turnaround in demand for technology
products. [ID:nTP331726]
"Despite the positive comments, the market was still
pressured by losses on Wall Street," said Tu Jin-lung, chairman
of Grand Cathay Investment Services.
"We need to wait until TSMC posts February sales to see if
recent rush orders and the weaker Taiwan dollar actually helped
it and might boost it in the longer term," said Tu, who expected
the market to trade between 4,450-4,607 points next week.
The semiconductor sub-index <.TSII> fell 2.51 percent. UMC
<2303.TW> , smaller crosstown rival of TSMC, shed 4.87
percent.
But DRAM shares were mixed following comments from a
government official. Taiwan's top DRAM maker Powerchip <5346.TWO>
fell 2.76 percent while ProMOS <5387.TWO> dropped by its 7
percent daily limit. Nanya Tech <2408.TW> jumped 2.68 percent.
Economics minister Yiin Chii-ming said the government
wants to consolidate the struggling DRAM sector under either
Japan's Elpida <6665.T> or Micron Technology , and will
announce plans by next week, a local newspaper reported.

HOT STOCKS
-- Electronics distributor Synnex Technology <2347.TW> fell
2.77 percent even after a newspaper cited a top company executive
as saying inventories at tech companies are falling back to
normal levels and the entire sector should pick up by March.

-- LCD TV maker Vizio Inc, which sells TVs made by Amtran
<2489.TW>, overtook Sony <6758.T> in the fourth quarter of last
year to become the United States' second most popular flat panel
TV brand after stepping up on its marketing efforts, research
firm iSuppli said. [ID:nTP101640]
Shares of Amtran climbed 0.93 percent.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -2.03 percent
Close on day 4,436.94
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$34.8)
(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]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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For Relevant Price Information, Double Click on one of these codes:<.TWII> <.MSTW>
Friday, 20 February 2009 14:09:15RTRS [nTP195098] {EN}ENDS

tw dlr 0219

17:32 19Feb09 RTRS-Taiwan dollar at 5-1/2-yr low, more weakness seen
(Updates to close)
TAIPEI, Feb 19 (Reuters) - The Taiwan dollar hovered at a 5-1/2-year low on Thursday as investors unloaded the local currency following a record GDP decline and an interest rate cut, while expecting further depreciation.
The Taiwan dollar , which has been weakening over the past two weeks, opened higher at T$34.600 but quickly fell back and closed at T$34.675, its weakest finish since June 11, 2003.
Volume on the main Taipei Forex Inc exchange was thin at $730 million, lower than Wednesday's $838 million.
"There wasn't a clear direction in the Taiwan dollar today, but the central bank did intervene to weaken it further, probably in response to how much the South Korean won fell today," said a dealer in Taipei.
The central bank, which controls the Taiwan dollar in a managed float, has been intervening in the foreign exchange market to help the island's exporters after the economy shrank at a record annual pace of more than 8 percent in the fourth quarter.
However, dealers cautioned that the Taiwan dollar could weaken further in the coming days, and would probably only find support at around T$35 to the U.S. dollar.
"The T$35 level is key because that's when exporters will probably start selling their U.S. dollar holdings, thus pushing the Taiwan dollar up in the process," another dealer said.
Exporters generally prefer a weaker Taiwan dollar as it allows them to get more of the local currency for every U.S. dollar.
On the smaller Cosmos exchange , the Taiwan dollar was trading for T$34.663, compared with Wednesday's close of T$34.605.
(Reporting by Kelvin Soh and Lin Miao-jung, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

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Thursday, 19 February 2009 17:32:23RTRS [nTP310914] {EN}ENDS

tw stock 0219

14:10 19Feb09 RTRS-Asustek leads Taiwan stocks up, poor GDP ignored
* Market reverses course on techs, gloomy GDP data ignored
* Asustek jumps on share buyback plan, weaker Taiwan dollar

(Adds details and quotes)
TAIPEI, Feb 19 (Reuters) - Taiwan stocks closed 0.68 percent
higher on Thursday as investors shrugged off a record GDP drop to
bet that recent rush orders and a weaker Taiwan dollar could help
boost earnings at technology exporters such as Asustek <2357.TW>.
The main TAIEX share index <.TWII> ended up 30.50 points at
4,528.87. The market dropped more than 1 percent in early trade
as dismal GDP data weighed, but changed course near midday,
extending a 0.15 percent rise a day earlier.
Turnover was light at T$70.5 billion ($2 billion), but higher
than Wednesday's T$62.9 billion.
The electronics sub-index <.TELI> was up 1.48 percent on
expectations that a weaker Taiwan dollar will help
generate forex gains.
"Tech shares continued to lift the market on rush orders. A
weaker Taiwan dollar also helped," said Andrew Deng, a vice
president of Taiwan International Securities Corp.
"But tech shares' upward momentum could be limited if we
don't see demand rising down the road."
Netbook PC pioneer Asustek, one major beneficiary of the
weaker currency, jumped 3.37 percent after saying it would launch
a share buyback worth up to T$2.88 billion. [ID:nTP135570]
The Taiwan dollar is hovering at a 5-1/2-year low, with the
central bank pushing the currency lower to boost sagging exports.
On Wednesday, Taiwan posted a record annual decline in
economic growth in the fourth quarter, prompting the central bank
to cut interest rate to a record low. [ID:nTP103975]
However, investors soon ignored the negative news.
"Many investors now think the fourth quarter should be the
bottom of the downturn," said Alex Huang, a vice president of
Mega International Securities.
Huang expected the TAIEX to trade between 4,400-4,550 points
for the rest of the week.

HOT STOCKS
-- Compal Electronics <2324.TW>, the world's No. 2 contract
maker of laptop PCs, fell 1.84 percent after posting a 34 percent
fall in fourth-quarter net profit due to weak demand.
[ID:nTP182293]
Compal has added around 10,000 workers in China to cope with
new orders from its clients, a local newspaper said on Thursday.

-- Mediatek Inc <2454.TW>, Taiwan's top microchip designer,
rose 1.95 percent, extending a 2.4 percent gain on Wednesday.
Two analysts said the company was aiming to ship 14 percent more
mobile phone chips this year. [ID:nTP161316]

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 0.68 percent
Close on day 4,528.87
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$34.7)
(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/]
ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/]
Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES &

[Story not fully loaded, incomplete text]

Wednesday, February 18, 2009

TWN STOCK 0218

Monday, February 16, 2009

tw stock 0217

13:55 17Feb2009 RTRS-Taiwan stocks close lower, ProMOS slumps after loan

* DRAM, financial shares drop after ProMOS banking loan
* Acer drops after smartphone launch

(Adds details and quotes)
TAIPEI, Feb 17 (Reuters) - Taiwan stocks ended 2.17 percent
lower on Tuesday, with shares of DRAM companies such as ProMOS
<5387.TWO> slumping even after a bank consortium agreed to lend
the struggling DRAM maker T$3 billion.
The main TAIEX share index <.TWII> closed down 99.48 points
at 4,491.78. ProMOS shares dropped by their 7 percent daily
limit, while the semiconductor sub-index <.TSII> shed 4.24
percent.
"Investors are having doubts whether ProMOS could survive in
the longer term. If the DRAM sector continues to worsen and
ProMOS fails to turn to profit, the loan will eventually be a
waste," said Michael On, a managing director of Beyond Asset
Management.
On expected the market to trade between 4,450-4,600 points
this week.
A banking syndicate agreed to give a new T$3 billion ($87
million) loan to ProMOS, which needs the money to help pay off
convertible bonds, the lead bank in the syndicate said on Monday.
[nTP271468]
Some 97 percent of holders of T$11 billion worth of European
Convertible Bonds (ECB) issued by ProMOS coming due this week
intend to redeem them, a local newspaper said on Tuesday.
Powerchip <5346.TWO> and Nanya Tech <2408.TW>, Taiwan's top
two DRAM companies, both ended limit-down. The electronics
sub-index <.TELI> lost 2.93 percent.
Uncertainty over the DRAM sector also weighed on the
financial sub-index <.TFNI>, which slid 2.07 percent. Cathay
Financial <2882.TW>, Taiwan's top listed financial holding firm,
dropped 2.65 percent.
Turnover was light at T$63.6 billion ($1.8 billion), lower
than T$72.4 billion in the previous session.
On said investors also fretted about Taiwan's fourth-quarter
economic data due out on Wednesday, after Japan posted its worst
economic decline since 1974 in the final quarter of 2008.
[ID:nT74412]
Taiwan's economy likely saw a record contraction in the
fourth quarter, a Reuters poll showed. [ID:nTP367581]
Acer Inc <2353.TW>, the world's third-largest PC brand, fell
6.3 percent after entering the increasingly crowded smartphone
market with the unveiling of its first

tw dlr 0216

17:22 16Feb2009 RTRS-Taiwan dollar at over 5-yr low on economic worries

(Adds close, details)
TAIPEI, Feb 16 (Reuters) - The Taiwan dollar fell to more than a five-year low on Monday as foreign funds and interbank dealers bought U.S. dollars actively on concerns over the domestic economy.
The Taiwan dollar , which weakened for an eighth straight session, extended its fall sharply in late trade to eventually close at T$34.280 to the U.S. dollar, which is the weakest finish since Aug. 20, 2003.
The T$34.280 mark is also Monday's intraday low, which was the weakest since Dec. 1, 2003 when the day's lowest level was T$34.291.
Volume on the main Taipei Forex Inc exchange was $800 million, higher than $691 million on Friday.
Daily volumes of the Taiwan dollar has been low falling below the $1 billion-mark due to the exports slump and market worries that the central bank would intervene by buying U.S. dollars actively to allow the Taiwan dollar to weaken to help exporters.
The Taiwan dollar has lost 4.3 percent since the start of 2009 as the economy suffered from an exports slump and weak domestic consumption during the global downturn.
"Everybody started buying U.S. dollars after the level fell through T$34.2. Exporters would have provided some support, but they didn't want to sell U.S. dollars today because they expect the Taiwan dollar to drop further," said a dealer.
The central bank issued a statement that the Taiwan dollar's level was relatively stable compared with other Asian currencies, reiterating its previous comment.
Exporters usually prefer a relatively weak Taiwan dollar as they can exchange their foreign currency earnings into more of the local currency.
On Monday, Taiwan's main TAIEX index <.TWII> inched down 0.03 percent, with foreign funds selling T$2.031 billion ($59 million).
The market is generally concerned about Taiwan's economy, with a Reuters poll estimating that the economy in the fourth quarter will contract by a record 5.6 percent from the same period a year earlier [ID:nTP367581].
The government will announce the figures on Wednesday.
Offshore investors also covered their short positions in the U.S. dollar.
Six-month NDFs (non-deliverable forwards) quoted at 0.050/0.100, compared with 0.030/0.080 on Friday, indicating that the Taiwan dollar will weaken by the larger degree in half a year.
On the smaller Cosmos exchange , the Taiwan dollar fell to T$34.250 to the U.S. dollar from Friday's close of T$34.046.
(Reporting by Lee Chyen Yee and Lin Miao-jung, Editing by Jacqueline Wong)
((chyenyee.lee@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: chyenyee.lee.reuters.com@reuters.net)) Keywords: MARKETS TAIWAN CURRENCY/

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Monday, 16 February 2009 17:22:36RTRS [nTP109360] {EN}ENDS

tw stocks 0216

14:29 16Feb2009 RTRS-Taiwan stocks finish flat, financial issues down

* Market off five-week closing high as financials weigh
* DRAMs mixed on ProMOS loan issueS
* Asustek rises on reported foreign exchange gains

(Adds details and quotes)
TAIPEI, Feb 16 (Reuters) - Taiwan stocks inched down 0.03
percent on Monday, retreating from a more than five-week closing
high, as troubled DRAM maker ProMOS's <5387.TWO> loan issues
weighed on financial shares such as Mega Financial <2886.TW>.
The main TAIEX share index <.TWII> ended down 1.24 points at
4,591.26, pulling back from a 2.82 percent gain on Friday.
Turnover was light at T$72.4 billion ($2.1 billion), slightly
lower than T$74.6 billion in the previous session.
The financial sub-index <.TFNI> lost 1.18 percent, while Mega
Financial, part of a consortium discussing further lending to
ProMOS, fell 2.42 percent.
"Banks are worried that ProMOS might not be able to pay back
(existing) loans. And many investors were staying on the
sidelines to wait for the results of ProMOS' loan problems." said
Tu Jin-lung, chairman of Grand Cathay Investment Services.
"But it seemed some investors thought ProMOS would get (a
new) loan and continued to buy its shares," said Tu, who expected
the market to trade between 4,584-4,817 points this week.
Shares of ProMOS, Taiwan's No. 3 DRAM maker, surged by their
7 percent daily limit, while the semiconductor sub-index <.TSII>
inched up 0.04 percent.
The Bank of Taiwan is likely to announce a decision later on
Monday on whether a banking consortium it leads would agree to
provide a T$5 billion loan to ProMOS, a local TV station said on
Monday. [nTP71746]
Powerchip <5346.TWO>, Taiwan's top DRAM maker, rose 0.25
percent, but smaller rival Nanya Tech <2408.TW> fell 2.84
percent.
Netbook PC pioneer Asustek <2357.TW> gained 0.6 percent after
a local newspaper said on Monday the firm could see foreign
exchange gains of about T$500 million this month following the
Taiwan dollar's recent depreciation against the U.S. dollar.
"Shares of Asustek won't likely jump a lot in the short term,
because concerns over demand remain. We still need to wait for at
least a quarter to see the effects of Asustek's restructuring,"
said Andrew Deng, a vice president of Taiwan International
Securities Corp.

HOT STOCKS
-- Quanta Computer <2382.TW>, the world's largest contract
manufacturer of laptop PCs, ended 1.65 percent higher even after
saying on Monday its first-quarter shipments would fall by 30
percent or more from the fourth quarter. [nTP89701]

-- Mediatek <2454.TW> fell 0.34 percent after Deutsche Bank
cut its earnings per share (EPS) forecast and target price for
the island's top chip designer. [nTP46084]
Separately, a local newspaper said on Monday the firm could
ship more than 60 million chips used in cellphones in the current
quarter on the back of increasing demand from the mainland.
------------------------------------------------------------
Move on day -0.03 percent
Close on day 4,591.26
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$34.1)
(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/]
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]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX

Friday, February 13, 2009

tw stock

14:30 13Feb2009 RTRS-Taiwan stocks post largest pct gain in 1-½ mths

* Market hits more than five-week closing high
* Asustek leads technology shares higher on improving outlook
* ProMOS jumps on government official comment

(Adds details and quote)
TAIPEI, Feb 13 (Reuters) - Taiwan stocks rose 2.82 percent on
Friday, their largest daily gain in 1-½ months, led by Asustek
<2357.TW> on expections tech companies would bottom out in the
first quarter following massive losses late last year.
The main TAIEX share index <.TWII> closed up 126.08 points at
4,592.50, its strongest finish since Jan. 7. The day's percentage
rise was the biggest since Dec. 30, 2008.
Turnover was T$74.6 billion ($2.2 billion), lower than
Thursday's T$80 billion.
Netbook PC pioneer Asustek, the third-most active stock by
turnover, surged by its 7 percent daily limit, after reporting
results that came in line with expectations. [ID:nTP333617]
"There are good chances for Asustek's inventory level to come
down. Its stock prices have dropped a lot, and now long-term
investment value has emerged for Asustek shares," said John Chiu,
a vice president of Fuh Hwa Securities Investment Trust.
Chiu expected the market to trade between 4,300-4,700 points
next week.
Shares of Asustek's larger rival Acer <2353.TW>, the world's
No.3 PC seller, shop up 6.49 percent.
The shares gained despite a statement by research firm IDC
that global shipments of PC processors in the fourth quarter fell
more than 11 percent from a year earlier as tech demand
shrivelled due to the global financial crisis, with the outlook
expected to be grim in the first half of 2009. [ID:nTP368993]
The electronics sub-index <.TELI> ended 3.25 percent higher.
Optimism about an improving sector outlook also spread to ASE
<2311.TW>, the world's top chip packaging firm, which gained 2.46
percent. ASE posted a net loss of T$800 million in
October-December, its first quarterly loss in nearly three years.
[ID:nTP356164]
Flat panel maker Chi Mei <3009.TW> ended up 0.86 percent,
recouping early losses as the company expected first-quarter
shipments to grow an average 5-10 percent from the fourth quarter
as its business is bottoming out from the sector's slump.
[ID:nTP354214]
ProMOS <5387.TWO>, Taiwan's No. 3 DRAM maker, ended limit-up.
Taiwan's economics ministry said it hoped a bank consortium
would agree to lend T$5 billion to ProMOS, though the Bank of
Taiwan, which is leading the talks, said on Friday a deal had not
been reached. [ID:nTP13415]
ProMOS is under growing pressure to pay off a T$11 billion
five-year convertible bond due on Saturday.
ProMOS's larger rivals Powerchip <5346.TWO> and Nanya Tech
<2408.TW> both rose more than 2 percent. The semiconductor
sub-index <.TSII> was up 2.97 percent.
------------------------------------------------------------
Move on day 2.82 percent
Close on day 4,592.50
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$34.0)
(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/]

twd 0213

17:18 13Feb2009 RTRS-Taiwan dollar at new 4-1/2-yr closing low, eyes GDP

TAIPEI, Feb 13 (Reuters) - The Taiwan dollar fell for a seventh straight session on Friday as investors, wary of dismal GDP data next week, sold the currency and the central bank pushed it even lower to help troubled exporters, dealers said.
The Taiwan dollar finished at T$34.050 to the U.S. dollar, a new 4-1/2-year closing low and down from the previous closing price of T$34.025.
The local currency has lost 3.6 percent since the beginning of the year on economic worries and U.S. dollar purchases by the central bank, which seeks to push the Taiwan dollar lower to help exporters hobbled by declining orders.
Volume on the main Taipei Forex Inc exchange was a thin $691 million, but higher than $517 million a day earlier.
"Everyone is speculating on the expectations for next week's GDP figures," said a dealer in Taipei.
A Reuters poll estimates that the economy in the fourth quarter contracted by a record 5.6 percent from the same period a year earlier [ID:nTP367581]. The government will announce the figures on Wednesday.
Taiwan's central bank also bought U.S. dollars late on Friday to push the local currency lower, helping exporters. A few exporters were in the market on Friday, dealers said.
The Taiwan dollar has recently hovered at 4-1/2-year lows, allowing exporters to buy more of it with U.S. currency for cash needs at home.
The local currency traded flat through much of the session as investors waited for market-moving news or stayed away for fear the central bank would intervene, dealers said.
"As the currency rate stays near T$34, everyone is watching to see the government's attitude," said a dealer in Taipei.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$34.046 to the U.S. dollar from the previous close of T$34.020.
(Reporting by Ralph Jennings and Lin Miao-jung, Editing by Jacqueline Wong)
((ralph.jennings@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: ralph.jennings.reuters.com@reuters.net))
Keywords: MARKETS TAIWAN CURRENCY/

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Friday, 13 February 2009 17:18:14RTRS [nTP14022] {EN}ENDS

twd 0213

Monday, February 9, 2009

twn stock 0212

16:46 12Feb2009 RTRS-Taiwan dollar hits 4-1/2-year closing low on funds

(Adds closing prices, quotes)
TAIPEI, Feb 12 (Reuters) - The Taiwan dollar weakened on Thursday, reversing course to a 4-1/2-year closing low, as foreign investors pulled out funds in the stock market and the central bank intervened to keep the currency weak.
The Taiwan dollar strengthened to as much as T$33.930 against the U.S. dollar in early trade due to exporters' purchases, but changed course in later trade. It closed down at T$34.025, its weakest finish since Aug 31, 2004.
Exporters prefer a weaker Taiwan dollar so they can exchange their U.S. dollar earnings to more of the local currency.
"Losses in the stock market pressured the Taiwan dollar. And there were foreign fund outflows," said a dealer in a local bank.
Taiwan stocks <.TWII> finished 2.39 percent lower on Thursday, ending a four-session winning streak as investors locked in profits from previous gains.
Foreign institutions sold a net T$3.9 billion ($115 million) worth of Taiwan stocks on Thursday, bringing their purchases to T$9.2 billion so far this month.
The Taiwan dollar was also pressured by central bank intervention.
"The central bank bought some U.S. dollars near the end of trade, but the amount it bought was not very much," said another dealer in Taipei.
The central bank bought U.S. dollars over the past few sessions as it wanted to help exporters weather an exports slump during the global downturn. [ID:nTP338600] [ID:nTP167618]
A cheaper local currency would make Taiwan's exports more competitive compared with other Asian economies.
Dealers said the Taiwan dollar would continue its downward trend, and expected the currency to trade between T$33.9 and T$34.1 for the rest of this week.
Taiwan's top state planner stopped short of forecasting where the Taiwan dollar was headed during a news conference on Thursday.
"A weaker Taiwan dollar will help in exports, but that will also make imports more expensive and affect investments," Chen said, when asked whether the Taiwan dollar would weaken further.
In the non-deliverable forwards market, six-month NDFs traded at 0.040/0.090, compared with 0.020/0.060 the previous session, meaning that investors saw the Taiwan dollar weakening by a larger degree in half a year.
Volume on the main Taipei Forex Inc exchange was light at $517 million, lower than $731 million a day earlier.
On the smaller Cosmos exchange , the Taiwan dollar softened to T$34.020 to the U.S. dollar from the previous close of T$33.987.
(Reporting by Gina Chang; Editing by Nick Macfie)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.come@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

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Thursday, 12 February 2009 16:46:08RTRS [nTP42699] {EN}ENDS

twd 0209

17:17 09Feb2009 RTRS-Taiwan dollar falls to 4-1/2-yr low on c.bank move

(Adds details, quotes)
TAIPEI, Feb 9 (Reuters) - The Taiwan dollar slid for a third straight session on Monday to close at its lowest level in 4-½ years, as foreign fund inflows that kept the local currency in positive territory were wiped out by the central bank's last-minute intervention, dealers said.
The Taiwan dollar rose to as high as T$33.602 to the U.S. dollar by midday, but gave up the gains to hit T$33.961 as the market ended, weaker than Friday's close of T$33.750.
Volume on the main Taipei Forex Inc exchange was thin at $885 million, but higher than Friday's $744 million.
The central bank's move came moments after Taiwan's government said the island's exports in January slumped by their steepest decline on record as the global downturn sapped demand from its key trading partners. [ID:nTP157850]
"The central bank moves were clearly related to the weak trade figures. Although these were within expectations, it's still a bad figure," said a dealer in Taipei.
"The market will now be cautious, and the Taiwan dollar may not rise as much as it would otherwise have."
Taiwan's central bank, which keeps the Taiwan dollar in a managed float, sometimes intervenes in the foreign exchange market to allow the local currency to weaken, helping the island's exporters compete with their Asian peers.
However, dealers said the Taiwan dollar could still strengthen in the coming days, especially if Taiwan stocks <.TWII> continue their upward trek.
"Some investors seem to be a little more daring these days, especially with all this talk about the U.S. economic stimulus package, and that's leading to some outflows from their U.S. dollar holdings," said another dealer.
Increased investor risk appetite typically leads to an outflow from safe havens such as the U.S. dollar, and could push the local currency up.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.673 to the U.S. dollar, stronger than Friday's close of T$33.710.
(Reporting by Kelvin Soh and Yvette Chen, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

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Monday, 09 February 2009 17:17:07RTRS [nTP182898] {EN}ENDS

tw stock0209

13:51 09Feb2009 RTRS-LCDs push Taiwan stocks to near 1-mth closing high

* Market hits near 1-mth closing high
* AU and Chi Mei lead tech shares higher

(Adds details)
TAIPEI, Feb 9 (Reuters) - Taiwan stocks rose 0.5 percent on
Monday to a near one-month closing high, led by LCD makers AU
<2409.TW> and Chi Mei <3009.TW> after they brought back workers
to some production lines that recently saw surges in new orders.
Taiwan's main TAIEX share index <.TWII> ended up 23.34 points
at 4,494.59, its highest finish since Jan. 14. The market also
got a boost from gains on Wall Street, where major indexes all
rose by more than 2 percent on Friday.
AU Optronics Corp and Chi Mei Optoelectronics Corp
were the market's two most active stocks by volume, each rising
3.4 percent and 4.9 percent, respectively.
"It looks like their sales would recover after receiving some
rush orders, and we are positive on that," said SinoPac
Securities analyst Alvin Teng, who expects the TAIEX to test as
high as 4,800 points by March.
(Click on [ID:nTP92412] for story on rush orders)
Among other winners, chip heavyweight TSMC <2330.TW>
jumped 1.8 percent and its smaller rival UMC <2303.TW>
rose 1 percent, lifting the semiconductor sub-index <.TSII> up
2.1 percent.
"The rise was responding to the U.S. stock markets and we
think the worst probably has gone and corporate sales in Taiwan
will start improving significantly from the second quarter," said
Alex Huang, vice president at Mega International Securities.
However, DRAM stocks lost ground even after Taiwan's
economics minister told Reuters last Friday that the government
had up to $2 billion to bail out the island's struggling DRAM
sector. [ID:nTP120576]
Powerchip <5346.TWO>, Taiwan's top DRAM chip maker, fell 3.7
percent and ProMOS Technologies Inc slid 6.8 percent to its daily
limit as T$11 billion worth of its previously issued convertible
bonds will be due on Feb. 14.
Financials <.TFNI> lost 1.3 percent following a report that
Taiwan's government is studying the possibility of extending by
one year its policy to guarantee 100 percent of bank deposits,
which is set to expire on Dec. 31.

HOT STOCKS
-- Mediatek Inc <2454.TW>, Taiwan's top chip designer, jumped
6.9 percent to its daily limit after a report said six foreign
brokerages had raised their outlook for Mediatek after the firm
gave better-than-expected first quarter guidance last Friday.
Rival VIA Technologies <2388.TW> also went limit-up after a
report that a unit of VIA has received orders for CDMA 2000
handset chips for the China market.
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]

------------------------------------------------------------
Move on day 0.52 percent
Close on day 4,494.59
2009 intraday high 4,817.44
2009 intraday low 4,164.19
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------

(US$1=T$33.6)
(Reporting by Baker Li, Editing by Jacqueline Wong)
((baker.li@thomsonreuters.com; +886 2 2508-0815; Reuters
messaging: baker.li.reuters.com@reuters.net))
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]
U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O]
Eurostocks Week Ahead [.EU/O] World forecasts
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA]
U.S. company news [TOP/EQU] European company news [TOP/EQE]
Forex news [TOP/FRX] Global Economy news [TOP/MACRO]
Technology news [TOP/TECH] Telecoms news [TOP/TELCO]
Media news [TOP/MEDIA] Banking news [TOP/FIN]
Politics/General news [TOP/G] Asia Macro data
A multimedia version of Reuters Top News is available at:
http://topnews.session.rservices.com
LIVE PRICES & DATA:
World Stocks <0#.INDEX> Currency rates
Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225>
FTSE 100 <.FTSE> Debt <0#USBMK=>
Taiwan dollar LME price overview
TAIWAN MARKET:
Taiwan equity mkt TAIEX <.TWII><.TV.TW>
Other indices <0#.INX.TW> TAISDAQ <.TWOII><.TV.TWO>
TAIMEX Taiwan index futures <0#TX:> MSCI Taiwan index <.MSTW>
SIMEX Taiwan index futures <0#STW:> FTSE TW50 index <.FTSETW50>
Keywords: MARKETS TAIWAN STOCKS

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Monday, 09 February 2009 13:51:02RTRS [nTP304654] {EN}ENDS

Friday, February 6, 2009

twd 0206

17:13 06Feb2009 RTRS-Taiwan dollar down for second straight day on c.bank

(Updates closing values, adds details)
TAIPEI, Feb 6 (Reuters) - The Taiwan dollar reversed early gains on Friday to close weaker for a second straight day as the central bank's purchase of U.S. dollars reversed foreign fund inflows that had kept the local currency in positive territory.
The Taiwan dollar closed at T$33.750, reversing course in the final minutes of trade after having hit a high of T$33.631 in early trade. The local currency closed at T$33.705 on Thursday.
Volume on the main Taipei Forex Inc exchange was thin at $744 million, but higher than Thursday's $588 million.
"If you ignore the final 30 minutes of trade where there was clearly some intervention by the central bank, we saw lots of foreign investors snapping up Taiwan dollars for most of the day," said a dealer in Taipei.
Foreign investors bought a total of T$6.45 billion ($191 million) worth of Taiwan stocks on Friday, bringing their total net purchase this month to T$4.34 billion.
Taiwan stocks <.TWII> rose more than 2 percent on Friday, their highest finish in three weeks, increasing investor risk appetites and leading to an outflow from safe havens such as the U.S. dollar.
However, some dealers cautioned that the Taiwan dollar could weaken rapidly in the coming week, especially if the island's export data, due on Monday, is below expectations.
"We're not too far off from the T$34 level, so I do think that's where the Taiwan dollar will find support if exports fall more than expected," said another dealer.
Taiwan's exports in January likely fell 48 percent from a year earlier, posting a second consecutive record decline, a Reuters poll showed. [ID:nTP350483]
On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.710, compared to Thursday's close of T$33.655.
(Reporting by Kelvin Soh and Yvette Chen, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

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Friday, 06 February 2009 17:13:33RTRS [nTP114287] {EN}ENDS

tw stock 0206

14:28 06Feb2009 RTRS-RPT-Taiwan stocks at over 3-wk closing high; TSMC leads

(Repeats)
* TSMC leads techs higher, pushing mkt to 3-wk closing high
* Powerchip, Nanya jump on gov't move
* ProMOS slides after report of debt pressure

(Adds details and quote)
TAIPEI, Feb 6 (Reuters) - Taiwan stocks rose 2.48 percent on
Friday, their highest finish in more than three weeks, as
chip bellwether TSMC <2330.TW> led technology shares higher on
hopes for the U.S. economic rescue package.
The main TAIEX share index <.TWII> ended 108.00 points higher
at 4,471.25, its strongest close since Jan. 14, recovering from a
0.61 percent fall in the previous session.
Turnover was light at T$71.8 billion ($2.1 billion), but
rising from T$55.5 billion a day earlier.
TSMC <2330.TW> , the world's top contract chip maker
and the most active share by turnover, jumped 5.42 percent,
boosting the electronics sub-index <.TELI> 3.24 percent higher.
"A rebound on Wall Street and the strong performance of
China's stock markets pushed the market higher today," said John
Chiu, a vice president of Fuh Hwa Securities Investment Trust.
China plays such as Taiwan Cement <1101.TW> rose 3.46
percent. The cement sub-index <.TCMI> advanced 3.91 percent.
Chiu expected the market to trade between 4,200-4,600 points
next week.
Taiwan's technology companies such as Taiwan Semiconductor
Manufacturing Co (TSMC) and smaller rival United Microelectronics
Corp (UMC) <2303.TW> sell the bulk of their products in
the United States. Shares of UMC advanced 2.59 percent.
Shares of DRAM companies rallied as Taiwan's economics
minister said the government has up to T$70 billion in funds to
help overhaul the DRAM sector and is considering various options,
such as setting up a joint venture company led by the government.
[ID:nTP97667]
Taiwan's top DRAM maker Powerchip <5346.TWO> jumped by its 7
percent daily limit and Nanya Tech <2408.TW> gained 4.49 percent.
The semiconductor sub-index <.TSII> rose 4.28 percent, lifted
by a 4 percent rally of the U.S. Philadelphia Semiconductor Index
<.SOXX>.
But shares of DRAM maker ProMOS <5387.TWO> dropped after a
local newspaper said the government would not help repay its
debts.
ProMOS shares shed 4.17 percent after a newspaper said on
Friday Taiwan's economics ministry will not pay any money to help
ProMOS meet its debt obligations.
The DRAM maker is under growing pressure to pay off T$11
billion in debt due on Feb. 14.
"The broader market have already factored in negative news of
ProMOS. But if it does fail, financial shares will be pressured
by ProMOS's bad loans," said Chiu.

HOT STOCKS
-- Chip designer Mediatek <2454.TW> rose 3.86 percent despite
a newspaper report saying the firm is conservative on its
prospects for the current quarter while its earnings per share
could be lower than market expectations.
Mediatek is set to give guidance on its first-quarter outlook
in an investor conference after the market close

Wednesday, February 4, 2009

twd 0204

17:27 04Feb2009 RTRS-Taiwan dlr up for 3rd straight day on fund inflows

(Updates closing values, adds details)
TAIPEI, Feb 4 (Reuters) - The Taiwan dollar rose for a third straight session on Wednesday, buoyed by foreign fund inflows into a rising stock market and exporters' deals, but central bank intervention capped the local currency's gains.
The Taiwan dollar hit a high of T$33.602 in early trade on Wednesday, its highest level since Jan. 23. Markets were closed last week for the Lunar New Year holiday.
However, the local currency later pared some of those gains to close at T$33.670, still stronger than the previous day's finish of T$33.720.
"There was some central bank intervention in the closing minutes of trade," said a dealer in Taipei.
"But even after three days of climbs, it's still weaker than where it was about a week before the Lunar New Year, so the Taiwan dollar could strengthen for a little bit more."
Even though the Taiwan dollar rose for a third straight day, it has been trending lower and lost about 2.5 percent since the start of 2009 mainly on worries over the global downturn.
The central bank's preference to allow the currency to depreciate to maintain Taiwan's export competitiveness also helped push the local currency lower this year.
Foreign investors bought a total of T$770 million ($23 million) worth of stocks on the local equity market on Wednesday, reversing two days of net outflows this week amid a climbing stock market. Taiwan stocks <.TWII> rose for a third straight day to hit a three-week closing high.
"The central bank remains very sensitive to export figures, and if there is any suggestion that exports could weaken, we could possibly see much stronger intervention from them," said another dealer in Taipei.
Taiwan is due to announce its January trade figures on Monday after posting a record fall in December's exports.
Dealers said exporters were also selling off their U.S. dollar earnings as they were worried that the Taiwan dollar could climb further, which meant that they will not be able to swap into more of the local currency.
Volume on the main Taipei Forex Inc exchange was thin at $592 million, lower than the $834 million recorded on Tuesday.
On the smaller Cosmos exchange , the Taiwan dollar closed at T$33.668, stronger than the previous day's close of T$33.690.
(Reporting by Kelvin Soh and Argin Chang, Editing by Jacqueline Wong)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) Keywords: MARKETS TAIWAN CURRENCY/

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Wednesday, 04 February 2009 17:27:29RTRS [nTP33460] {EN}ENDS

tw stock 0204

14:33 04Feb2009 RTRS-Taiwan stocks at 3-wk closing high, Powerchip up

* Market extends gains for a third straight session
* Powerchip, ProMOS jump on hopes of sector consolidation
* Hon Hai rises on report of listing overseas unit in Taiwan

(Adds details and quote)
TAIPEI, Feb 4 (Reuters) - Taiwan stocks rose for a third day
on Wednesday to finish at a three-week closing high, with
DRAM makers Powerchip <5346.TWO> and ProMOS <5387.TWO> rallying
in hopes of a sector consolidation.
The main TAIEX <.TWII> share index closed up 0.39 percent or
17.16 points to 4,389.97, its strongest finish since Jan. 14. But
the index gave up some of its early gains as some investors
locked in profits.
Turnover was light at T$61.5 billion ($1.8 billion), but
higher than Tuesday's T$59.8 billion.
The semiconductor sub-index <.TSII> was up 0.32 percent,
while shares of top DRAM maker Powerchip and smaller rival
ProMOS gained 4 percent and 4.65 percent, respectively. But
shares of Nanya Technology <2408.TW> fell 3.61 percent.
Taiwan's economics minister said on Tuesday consolidation of
the island's struggling DRAM sector could come within one month
at the earliest. [ID:nTPU001073]
"I am not that sure the government will lead consolidation
in the DRAM sector. I think the government is still quite
cautious and prefers DRAM firms to strike a consolidation deal
themselves," said Andrew Deng, a vice president of Taiwan
International Securities.
Powerchip shares, which ended at T$3.64, also got a lift as
Goldman Sachs raised its target price for the company to T$4.0
from T$2.9, citing easing financing concerns as it could follow
a similar path as ProMOS <5387.TWO> to secure loans.
[ID:nTP21659]
The market was further boosted as Taiwan's top financial
regulator said on Tuesday it was studying measures to make it
easier for local companies to meet their debts during the
deepening global recession. [ID:nTP345608]
"The measure is negative in the longer term as the number of
companies' outstanding shares will rise. But it could provide a
short-term relief for companies, like ProMOS, that are under
imminent pressure to pay off debts," said Deng.
ProMOS is due to repay T$11 billion worth of convertible
bonds on Feb. 14.
Deng said the market would be under pressure as expected
weak economic data and company results are due to be announced
within two weeks. He expected the TAIEX to trade between
4,000-4,400 points for the rest of this week.
Taiwan will announce its January consumer price data on
Thursday and export data next Monday. On Tuesday, Taiwan said
its leading indicators index in December fell for a 13th
straight month, painting a grim outlook for the trade-reliant
economy.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's biggest contract chip maker, edged up 0.12
percent after denying a report on Tuesday that it was evaluating
a plan to reduce its capital to return cash to shareholders.
[ID:nTP339428]
The electronics sub-index <.TELI> was up 0.67 percent.
Shares of Hon Hai <2317.TW>, Taiwan's top electronics parts
maker, rose 0.33 percent after local media said a company
executive met representatives from the Taiwan Stock Exchange to
discuss the possibility of listing its overseas units, such as
Foxconn <2038.HK>, in Taiwan.
Hon Hai planned to issue corporate bonds within the next two
weeks, another local newspaper reported.

HOT STOCKS
-- ASE <2311.TW> fell 0.84 percent, after BNP Paribas
lowered its 2009 financial forecasts on the world's top chip
packager as falling chip prices hurt profit margins.
[ID:nTP18302]
------------------------------------------------------------
Move on day 0.39 percent
Close on day 4,389.97
2009 intraday high 4,817.44
2009 intraday low 4,164.19
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$33.6)
(Reporting by Gina Chang; Editing by Ken Wills)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.c