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Taiex gains amid concerns over oil prices

Taiex gains amid concerns over oil prices

Taiwan's stocks gained yesterday after a drop in crude oil prices damped concern fuel bills will rise at home and abroad. Hon Hai Precision Industry Co. and Asustek Computer Inc. paced the advance.
"Stabilizing energy prices will allow manufacturers to control production costs," said Vickie Hsieh, a manager at President Investment Trust Corp. "A drop in oil prices will help maintain consumer demand."
Chinatrust Financial Holding Co., the biggest Taiwanese credit-card issuer, climbed after predicting higher earnings for the remaining quarters of this year.
The Taiex index added 27.62, or 0.4 percent, to close at 7,903.04 in Taipei yesterday. About three stocks rose for every two that declined. Futures due in May gained 0.6 percent to 7,896.
Hon Hai, Taiwan's biggest electronics exporter by sales, climbed NT$12, or 5.4 percent, to NT$233.50. Asustek Computer, Taiwan's largest maker of boards that connect the chips in personal computers, rose NT$2.30, or 3 percent, to NT$78.70.
Crude oil for June delivery dropped 3.1 percent in the previous two days to US$64.40 a barrel in New York on Tuesday, the lowest close since April 20. Taiwan imports almost all the oil it requires and the island's biggest markets - China and the U.S. - are the world's top two consumers of the fuel.
Sakthi Siva, chief Asia strategist at UBS AG, named Hon Hai, MediaTek Inc., AU Optronics Corp., and China Steel Corp. among her top picks in Taiwan, according to a note dated yesterday.
MediaTek, the world's largest supplier of chips for DVD players, added NT$13, or 3.1 percent, to NT$431. AU Optronics, the world's third-largest LCD maker, rose NT$0.70, or 1.3 percent, to NT$53.40. China Steel, Taiwan's largest steelmaker, advanced NT$0.80, or 2.1 percent, to NT$38.60.
Chinatrust Financial, Taiwan's fourth-largest lender by market value, gained NT$0.55, or 2.1 percent, to NT$26.80. Chinatrust expects 2007 profit of NT$17.5 billion, with earnings for the remaining quarters of the year forecast to exceed the NT$2.64 billion reported for the first three months, spokesman Jason Wang said on April 30.
Catcher Technology Co., a maker of metal casting used in notebook computers and mobile phones, jumped NT$17.50, or 6.8 percent, to NT$273.50.
Pauline Chen, an analyst at Credit Suisse Group, raised her recommendation on the stock to "neutral" from "underperform," citing better-than-estimated first-quarter earnings. Catcher's profit rose 38 percent from a year earlier to NT$1.75 billion, 13 percent higher than Chen's estimate, according to a research note published yesterday.


Updated : 2021-05-14 19:46 GMT+08:00