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/]