tw market 0410

14:19 10Apr09 RTRS-Taiwan stocks log 7th weekly gain to 7-month high * Taiwan stocks record 7th consecutive week of gains * LCD makers such as Chi Mei lead rally * Financials climb after Cathay Q1 profit * Analysts say shares could come under profit-taking pressure By Kelvin Soh TAIPEI, April 10 (Reuters) - Taiwan stocks closed 2.01 percent higher at a seven-month high on Friday, posting their seventh straight week of gains as LCD shares such as Chi Mei <3009.tw> jumped on hopes the sector had bottomed out. The main TAIEX share index <.TWII> closed 114.16 points higher at 5,781.96, its strongest close since Sept 26. Turnover was high at T$160.14 billion ($4.7 billion), similar to most trading days in the past two weeks, but more than double the average figure seen during the down months of January and February this year. LCD makers led the day's climb, with Chi Mei advancing by its daily 7 percent limit after a senior executive told local media he believed the worst was over for the industry. Its larger rival AU Optronics <2409.tw> closed 6.58 percent higher, while the broader optoelectronics sub-index <.TOPI> ended the session up 4.32 percent. "Besides rush orders from China, there're some encouraging signs that the slowdown could be ending in Western economies, which would mean increased consumer demand for gadgets like LCD televisions," said Alvin Teng, an analyst at Sinopac Securities. LCD makers struggled for much of the first quarter of this year, but have recently managed to stage a turnaround on the back of China's move to boost buying of electronic products in rural areas. The optoelectronics sub-index has climbed nearly 50 percent since the beginning of the year, far outpacing the 26 percent advance on the big board. Shares of Taiwan Semiconductor Manufacturing Co <2330.tw> ended 1.15 percent higher, just before the world's contract chip maker said its first quarter sales fell by an annual 55 percent on weaker chip demand, but the result beat its own forecast due to rush orders related to China. [ID:nTP337802] Financial shares also climbed, led by Cathay Financial <2882.tw>, after it reversed a year-ago loss to report market-beating first quarter profits. Cathay Financial closed the session 4.57 percent higher after reporting a first-quarter net profit of T$4.98 billion ($147 million), exceeding market expectations and turning back on its T$5.98 billion loss during the same period last year. Sentiment in the banking sector was further boosted by San Francisco-based Wells Fargo's announcement that it expects to post a record $3 billion first-quarter profit. However, some analysts cautioned that investors could be tempted into locking in profits next week after seven straight weeks of gains that has seen the TAIEX share index climb 30 percent, and ahead of earnings season in the United States. "The pressure to sell will grow stronger by the day next week," said Alex Huang, vice-president at Mega International Securities. "Not everyone is Wells Fargo. First-quarter earnings are unlikely to be outstanding, and this will all likely pressure stocks, which have climbed quite a lot anyway." --------------------TAIEX IN PERSPECTIVE-------------------- Move on day 2.01 percent Close on day 5,781.96 2009 intraday high 5,788.21 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] ((Editing by Ken Wills; kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
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