Taiwan shares end higher on improved market sentiment

Taipei, Aug. 8, 2003 (CENS)--Taiwan shares rose moderately to end a three-day losing streak, as market sentiment was improved after flat panel display maker AU Optronics raised its 2003 pretax profit forecast, analysts said.

AU Optronics Wednesday raised its earnings projection for 2003 to NT10.51 billion from NT$2.58 billion forecast previously, helping to lift share prices of other TFT-LCD firms and the bellwether electronics industry.

The weighted price index of the Taiwan Stock Exchange rose 33.24 points, or 0.64%, to 5259.07 in dealings valued at NT$92.32 billion. However, declining shares outnumbered advancers 317 to 316, while 126 stocks were unchanged.

Riding on the AU Optronics lead, bullish investors pushed various sectors higher, including the steel, transportation and financial sectors.

Electronics shares ended 0.9% higher, steel issues were up 1.5%, transportation stocks gained 1.47%, financials were up 0.2%, while the construction sector was down 0.9%.

AU Optronics closed limit-up NT$2.20 to NT$34.90, rival Chie Mei Optoelectronics was up NT$2.50 to NT$38.30, and Chunghwa Picture Tubes gained NT$0.70 to NT$17.

Chip foundry United Microelectronics was down NT$0.20 to NT$22.90 after the firm agreed to buy back Infineon Technologies AG's stake in joint venture UMCi Pte Ltd. In Singapore. However, rival Taiwan Semiconductor Manufacturing advanced NT$1.50 to NT$60.

China Steel, Taiwan's largest steel mill, was up NT$0.40 to NT$24.60 ahead of the last day of a 3-day auction in a domestic offering.

The price index of the over-the-counter market ended up 0.70 point, or 0.64%, to 110.56 in dealings valued at NT$12.88 billion.

August index futures on Taiwan's futures exchange closed up 39 points to 5281 on turnover of 40,148 lots. August electronics futures gained 1.80 points to 235.20 on volume of 4,607 lots, while August financial shed 0.40 point to 686 on turnover of 1,492 lots.