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Taipei shares close higher as LCD makers surge on China orders hopes

Post Time:Jan 16,2009Classify:Industry NewsView:457

Share prices closed higher as LCD panel makers surged after reports that AU Optronics and Chi Mei Optoelectronics may ink partnership deals with Chinese TV set manufacturers.

AU Optronics (nyse: AUO - news - people ) rose 3.6 pct and Chi Mei gained 3 pct, helping the technology sector end with a gain of more than 1.5 pct

Dealers said the market was also helped by technical factors after its 4.4 pct slump yesterday.

The weighted index closed up 32.93 points or 0.76 pct at 4,353.70, off a low of 4,313.19 and high of 4,382.43.

Turnover was thin at 46.84 bln twd.

The market will be open tomorrow for a special trading session to compensate for Lunar New Year holidays later this month.

Alex Huang, an assistant vice-president at Mega International Investment Services, said the market staged a come-back after previous slumps, with LCD panel makers and semiconductor firms leading the technology sector higher.

'Riding on Intel (nasdaq: INTC - news - people ) gains and expectations of China demand for local (LCD) panels, the market managed a recovery... in an extended trading week,' Huang said.

Intel Corp shares gained 4 pct overnight in a relief rally after the chipmaker said it expects margins to bounce back to 'healthy' levels by the second half. The stock had plunged earlier after news that its CEO Steve Jobs will take a long medical leave of absence.

Meanwhile, local media reported that AU Optronics and Chi Mei are set to sign supply contracts with Chinese TV makers.

Steel firms were also supported following news that China plans to retire some outdated or redundant crude steel capacity.

However, turnover remained light as investors refrained from building large positions ahead of the Lunar new year break, Huang noted.

Taiwan markets will be closed from January 22 for the Lunar New Year. Trade will resume on February 2.

Risers led decliners 944 to 544, with 261 stocks unchanged.

A total of 26 stocks closed limit-up, while 10 were limit-down.

The steel sector was up 2.36 pct and electronics was up 1.54 pct, while financial lost 0.21 pct.

The Taiwan dollar ended the morning session at 33.343 to the US dollar, compared with the previous close of 33.379.

AU Optronics surged 0.85 twd to 24.40 and Chi Mei Optoelectronics soared 0.30 twd to 10.30 on hopes for China orders.

Source: XFN-ASIAAuthor: shangyi

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