32.300/1177/ +2.8

14:36 16Oct09 RTRS-Taiwan stocks inch to 16-mth closing high; techs slip * LCDs shares fall after LG Display f'cast lower panel prices * Banking stocks beat broader market * Mediatek helped by positive brokerage note * Analysts say TAIEX to pull back to 7,600 pts next wek (Updates indexes, adds quotes and details) TAIPEI, Oct 16 (Reuters) - Taiwan stocks inched up 0.06 percent on Friday to a 16-month closing high, with gains in financial shares offset by concerns over a weaker fourth quarter for LCD makers such as AU Optronics <2409.tw>. The main TAIEX share index <.TWII> edged up 4.7 points to 7,715.10, the highest close since June 26, 2008, finishing this week with a 1.9 percent gain. The banking and insurance sub-index <.TFNI> outperformed the broader market, rising 1.34 percent, with Cathay Financial <2882.tw> up more than 2 percent. Turnover was thin at T$118 billion ($3.7 billion), compared with Thursday's T$165 billion and a daily average of T$130 billion this week. LCD makers AU Optronics and Chi Mei <3009.tw> fell 2.41 percent and 0.58 percent, respectively, after their larger Korean peer LG Display <034220.ks> said on Thursday that average LCD panel prices would decline, while shipments were expected to rise by less than 10 percent. [ID:nSEO366638] "The market is caught between investors' unwillingness to buy at such high prices and a reluctance to sell on brighter outlook of the broader economy," said Tom Tang, a vice president at Masterlink Investment Advisory. Tang expected the main index to stage a pull-back next week, but could find support at its 10-day moving average at 7,600 points. "The effects from positive earnings have already worn off, and the main index could come under greater pressure of profit-taking in the upcoming week." Shares of TSMC <2330.tw>, the world's largest contract chip maker, fell 2.98 percent. A local newspaper reported that its chairman, Morris Chang, is likely to announce a resumption of salary rises for employees following the sector's recovery. But Mediatek <2454.tw>, the most-actively traded stock by turnover, climbed almost 3 percent after Morgan Stanley reiterated its overweight rating on Mediatek shares on fair valuation and a mild decline in the fourth quarter. Smartphone maker HTC Corp <2498.tw> advanced 2.31 percent. Its larger rival, Nokia , the world's top cellphone maker, reported its worst quarterly result after losing its smartphone market share. [ID:nLF596616] HOT STOCKS -- Electronics parts giant Hon Hai <2317.tw> fell 0.76 percent. Sources told Reuters on Thursday that the Hon Hai Group would invest more than $1 billion to build a production facility in the southwestern Chinese city of Chengdu. [ID:nTP102315] -- DRAM makers fell, with Powerchip <5346.two>, Taiwan's top computer memory chip maker, down 4.35 percent and ProMOS <5387.two> 6.84 percent lower. Taiwan Innovation Memory Co (TIMC) had requested less capital from the government as the DRAM chip sector emerges from its worst slump. [ID:nTP89400]. ---------------------TAIEX IN PERSPECTIVE----------------- Move on day 0.06 pct Close on day 7,715.10 2009 intraday high 7,780.66 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-cl ick on [ID:nTP170358] (Reporting by Joan Hsu; Editing by Ken Wills) ((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] 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] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks <0#.index> Currency rates Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225> FTSE 100 <.FTSE> Debt <0#usbmk=> Taiwan dollar LME price overview TAIWAN MARKET: Taiwan equity mkt TAIEX <.TWII><.TV.TW> Other indices <0#.inx.tw> TAISDAQ <.TWOII><.TV.TWO> TAIMEX Taiwan index futures <0#tx:> MSCI Taiwan index <.MSTW> SIMEX Taiwan index futures <0#stw:> FTSE TW50 index <.FTSETW50> Keywords: MARKETS TAIWAN STOCKS/
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