STOCKWATCH: Taiwan electronics -- 2 (semiconductor stocks lead gains)
AFX, Sunday, January 10, 1999
At 9:43 am, the electronics sector was up 2.37 pct.
The weighted index was up 15.19 points at 6,436.94, off a high of 6,492. 90,
on turnover of 31.72 bln twd.
Jardine Fleming Taiwan Investment Management Ltd fund manager Grace Lee
said semiconductor stocks continue leading the broad electronics shares higher
on stabilised dynamic random access memory (DRAM) chips prices.
She said semiconductor stocks previously had factored in the industry
overcapacity issue and now the sector is taking the cue from any positive
leads.
Expectations of fundamental improvements also sparked interest.
"For instance, leading TSMC and UMC seem to be doing better than expected
on securing contracts."
"Their shares prices had been corrected, now they are taking the
opportunity to overperform."
High-priced electronics stocks also staged a comeback today on rotational
plays after previous corrections.
However, profit-taking is expected to emerge anytime to cap early gains.
"Generally speaking, investors are still cautious, there are still concerns
over any broad market correction."
She said the bellwether sector is outperforming at the cost of some other
sectors.
"Liquidity is shifting into the electronics sector from others, capping the
benchmark index's early rally."
Lee said semiconductor stocks are anticipated to continue their strong
showing in the near term as long as DRAM prices hold on to current levels.
UMC rose 1.70 twd to 46.10, TSMC added 4.00 to 80.00, Mosel was up 0.70 at
35.10, and Winbond was 1.40 higher to 39.40.
The financial and petrochemicals sectors led declines, down 1.45 pct and
1.06 pct. |
