AP
Taiwan Shares Rise on Cell Phone Demand
Thursday December 15, 3:12 am ET
Optimism About Demand for Mobile Phones Drives Taiwan Shares Higher
TAIPEI, Taiwan (AP) -- Taiwan shares rose slightly Thursday, on expectations of strong demand for mobile phones in the first quarter of 2006.
The Weighted Price Index of the Taiwan Stock Exchange gained 23.12 points, or 0.4 percent, to 6,258.47.
Handset and handset component makers outperformed the market. Traders said sales will likely be driven by demand for higher-end mobile phones in the first quarter.
"As investors start to talk about the first quarter, handset and related stocks easily stand out as we expect demand for mobile phones, including smartphones, to be strong," said KGI Securities trader Bill Huang.
Among Taiwan's contract mobile-phone makers, Arima Communications surged by the daily limit of 7 percent to 28.4 New Taiwan dollars, and High Tech Computer rose 2 percent to NT$515.
Handset component maker Inchia Technology jumped 6.9 percent to NT$29.55, and Silitech Technology climbed 6.9 percent to NT$139.
United Microelectronics Corp., the world's second-largest contract chipmaker by revenue, rose 1.1 percent to NT$18.1 after falling 4.3 percent Wednesday following the restatement of its U.S. earnings for 2002, 2003 and 2004 due to calculation errors.
Taiwan Semiconductor Manufacturing Co., UMC's larger rival, fell 0.3 percent to NT$60.9.
Airline stocks rose on reports that bookings for the special charter flights between Taiwan and China during the Lunar New Year holiday period will likely be strong.
Direct flights ended when the two sides split in 1949, but the civil aviation associations of Taiwan and China reached an agreement last month to organize 72 round-trip charter flights between Jan. 20 and Feb. 13.
Six Taiwanese airlines, including China Airlines and EVA Airways, and six airlines from China have been allowed to provide the flights.
China Airlines, the island's largest carrier, rose 1.3 percent to NT$15.45 and EVA Airways gained 3.8 percent to NT$14.95
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