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