tw stock 0317

14:07 17Mar09 RTRS-Taiwan stocks hit 5-mth closing high on financials * Financial shares push market to 5-mth closing high * HTC gains after upbeat outlook * Powerchip limit-up after reportedly selling Rexchip stake (Adds details and quote) TAIPEI, March 17 (Reuters) - Taiwan stocks rose 1.41 percent on Tuesday to a five-month closing high, as growing optimism about the global financial system boosted banking shares such as Cathay Financial <2882.tw> and Chinatrust Financial <2891.tw>. The main TAIEX share index <.TWII> ended up 70.07 points at 5,041.39, closing above 5,000 points for the first time since Oct. 16. Turnover was moderate at T$107.4 billion ($3.1 billion), up from T$105.8 billion a day earlier. The financial sub-index <.TFNI> was the second-biggest winner of the sub-indexes, jumping 2.62 percent on signs the global financial system is stabilising after British bank Barclays Plc said it has had a strong start this year. Shares of Cathay Financial, Taiwan's top listed financial holding firm, rose 2.84 percent and rival Chinatrust Financial jumped by its 7 percent daily limit. Cathay share were further propped up after a newspaper said foreign investors bought its shares on Monday, ending 20 straight sessions of sell-off for the stock. "It seems foreign investors have become more optimistic about financial shares. But investors should be cautious that their gains could be a short-term boost since the outlook for the economy remains unclear," said Tu Jin-lung, chairman of Grand Cathay Investment Services. Tu expected the market to trade between 4,850-5,095 points this week. The electronics sub-index <.TELI> ended up 0.87 percent. Shares of smartphone vendor HTC <2498.tw> rose 2.3 percent after reaffirming its previous target of double-digit revenue growth for this year, and saying it expects momentum to pick up from the second quarter as it pushes out new models. [nTP256933] Mediatek Inc <2454.tw>, Taiwan's top chip designer, rose 1.64 percent even after saying visibility in chip demand was not clear in the second half of the year. [ID:nTP316972] Shares of Taiwan's top DRAM maker Powerchip <5346.two> ended limit-up after it said it sold part of its stake in its Rexchip joint venture with Japan's Elpida <6665.t> to the Japanese company. HOT STOCKS -- The construction sub-index <.TCOI> rose 0.90 percent after a newspaper said local insurers affiliated with financial holding companies such as Cathay Financial and Shin Kong Financial <2888.tw> would spend about T$200 billion on real estate this year. -- The tourism sub-index <.THOI> dipped 0.69 percent, as investors took profits from its 6.9 percent surge on Monday. Shares of hotel chain operators have gained momentum recently as the number of Chinese tourists visiting Taiwan increased sharply. -- The transportation sub-index <.TTPI> advanced 1.52 percent after a newspaper said direct shipping routes between Taiwan and China could begin by May, between the southern port city of Kaoshiung and the Chinese city of Xiamen. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 1.41 percent Close on day 5,041.39 2009 intraday high 5,050.63 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$34.3) (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]
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