Taiwan stocks end up sharply, AU's ADR lifts techs
Friday May 24, 2:08 PM
sg.biz.yahoo.com
TAIPEI, May 24 (Reuters) - Taiwan stocks closed up nearly three percent on Friday, bolstered by the issue of U.S. shares by AU Optronics that boosted downstream tech companies that have shown improving fundamentals, analysts said.
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The main TAIEX share index ended up 156.44 points or 2.82 percent at 5,706.40, extending a two percent rise over the past two sessions that bounced from a near five-month low.
Turnover was modest at T$87.35 billion, but up significantly from T$61.21 billion in the previous session.
"In addition to AU's rally, funds flowed back to the tech sector because investors still have confidence in companies with bright sales or earnings prospects," said Peter Wen, analyst at Taiwan Securities.
Wen expected the TAIEX to fluctuate between 5,400-5,900 points in the short term. Taiwan is in the middle of the annual second quarter slowdown in manufacturing activity.
The most heavily weighted electronics sub-index shot up 3.08 percent after AU, the world's third-largest computer panel maker, issued American Depositary Shares at a higher-than-expected 4.5 percent discount to the Thursday close of its local shares.
AU was the market's most active stock, surging the daily seven percent maximum to T$44.50 as recent doubts over its U.S. issue price were cleared away, and rival Chunghwa Picture Tubes
also jumped the maximum to T$27.30. |
