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14:48 27Mar09 RTRS-Financials push Taiwan stocks to 5-1/2-mth high * Market rises for fifth session to 5-1/2-mth closing high * Financials rally on central bank rate decision * TSMC up after optimistic sector outlook * AU rises after ending unpaid leave for staff (Adds details and quotes) By Gina Chang TAIPEI, March 27 (Reuters) - Taiwan stocks rose for a fifth session on Friday in heavy trade, closing at a fresh 5-1/2-month high as this week's central bank decision to keep interest rates on hold boosted financials such as Cathay Financial <2882.tw>. The main TAIEX share index <.TWII> rose 0.08 percent, or 4.14 points, to 5,390.70, posting its longest winning streak in two months and logging its best close since Oct. 7. The financial sub-index <.TFNI> rose 2.16 percent after Taiwan's central bank surprised markets and left interest rates intact at a record low of 1.25 percent on Thursday. [ID:nTP324609] Shares of Cathay Financial, the island's top listed financial holding firm, rose 3.83 percent and Shin Kong Financial <2888.tw>, Taiwan's No.3 insurer, jumped by its 7 percent daily limit. The rate decision is expected to ease pressure on banks and insurers as it improves their interest rate spread. Previously, the central bank had resorted to seven straight cuts in a bid to support the island's sagging exports amid the global downturn. "The rate decision showed the financial environment is stabilising. The central bank will likely maintain the interest rate through the second quarter," said Alex Huang, a vice president at Mega International Securities. "All the concerns that clouded financial institutions are gone, and there are more positive boosts ahead, such as an agreement with China. The rebound in financial shares has just started." The signing of a much-anticipated memorandum of understanding for the financial sector between Taiwan and China is expected to take place by mid-2009 when top negotiators from both sides meet. Taiwan Semiconductor Manufacturing Co (TSMC) <2330.tw> , the world's top contract chipmaker, gained 0.39 percent after its chairman said the outlook for the global semiconductor industry was better than a month ago. [nTP67516] Adding further optimism was a newspaper report that said the chipmaker could see utilisation rates at its 12-inch wafer plants rising to 80 percent in the second quarter due partly to the rush of orders from mobile phone maker Qualcomm . AU Optronics Corp <2409.tw>, the world's No. 3 LCD maker, rose 1.87 percent after saying it would end unpaid leave for staff from April, following a similar move by chipmaker TSMC and UMC <2303.tw>. [ID:nTP9081] However, gains were pared as investors became cautious and locked in profits from recent rallies. The TAIEX gained a total of 9 percent this week. Shares of UMC <2303.tw> fell 2.5 percent after a 30 percent jump over the past four sessions. The electronics sub-index <.TELI> ended flat while the semiconductor sub-index <.TSII> fell 0.20 percent. Mega's Huang expected the TAIEX to take a breather from recent gains and trade between 5,200-5,600 points next week. Turnover was active at T$142.6 billion ($4.2 billion), but lower than a 10-month high of T$147.5 billion a day earlier. HOT STOCKS -- VIA Technologies <2388.tw>, a small rival of Intel , ended limit-up. Its rise came after a newspaper said the company was planning to raise more than T$3 billion via a private placement and have graphics chip maker Nvidia Corp as a possible investor for the share sale. -- The tourism sub-index <.THOI> lost 2.99 percent as investor hopes for more mainland tourists to visit Taiwan were dashed after China ordered provincial governments on Thursday to stick to the central holiday schedule, dashing plans by southern Guangdong to restore a week-long break that coincides with May Day [nPEK375096]. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 0.08 percent Close on day 5,390.70 2009 intraday high 5,468.49 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$33.8) (Editing by Dhara Ranasinghe) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; ReutersMessaging:gina.chang.thomsonreuters.come@reuters.com)) ((If you have a query or comment on this story, send an email tonews.feedback.asia@thomsonreuters.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]
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