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Local bourse ends up on strength of electronics shares

Local bourse ends up on strength of electronics shares

Taipei, Dec. 29 (CNA) Shares in Taiwan opened flat but closed higher Monday largely on the strength of electronics stocks, and one analyst was optimistic that specific electronics sectors would pick up further momentum in the coming months.
The weighted index on the Taiwan Stock Exchange ended up 67.78 points, or 0.73 percent, at 9,286.28 after moving between 9,216.43 and 9,313.33 on turnover of NT$81.52 billion (US$2.57 billion). The electronics sub-index closed 0.97 percent higher on the day, helped by electronics heavyweights.
Taiwan Semiconductor Manufacturing Co. (TSMC), the heaviest weighted stock on the exchange, rose 1.81 percent to close at NT$141, while smartphone camera lens producer Largan Precision Co. closed 3.68 percent higher at NT$2,395. Wang Chung-liang, the manager of the Taishin Small & Medium Cap Fund, said memory chip stocks will likely gain momentum after the Lunar New Year, which falls on Feb. 19, because memory chip prices remained stable during the low season, and inventories are now low.
Semiconductor sales should also be strong in the first quarter of 2015, Wang said, because of inventories drawn down by strong sales of consumer gadgets during "Single's Day" in China and over Christmas and another peak shopping season -- the Lunar New Year holiday -- on the horizon. Wang said the inventory adjustments that have left LEDs and network communications sluggish are nearly at an end, and the revenues of those two sectors should pick up. Network communications shares in particular, boosted by 4G LTE station installation and strong demand for optical fiber networks in China, is expected to shine next year. Meanwhile, Wei Chuan Foods Corp.'s share price continued to tumble following an ultimatum for Ting Lu Development Co., in which Wei Chuan owns a 51 percent stake, to repay loans of NT$6.5 billion by the end of this year. It opened at NT$24, down 4 percent, but buying soon propped up the price, and the stock closed at NT$24.8, down 0.8 percent. Ting Lu and Wei Chuan are both part of the scandal-ridden Ting Hsin International Group, which saw its reputation seriously tarnished after the edible oils of its subsidiaries were found to contain ingredients unfit for human consumption. (By Jalen Chung, Han Ting-ting and Lilian Wu)