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Remarks from Bernanke push Taiex up

Remarks from Bernanke push Taiex up

Taiwan's stocks rose yesterday, paced by exporters such as Acer Inc., on speculation the U.S. Federal Reserve will cut interest rates next month to sustain the economy.
"A U.S. rate cut is the remedy investors are calling for to ensure economic growth," said Sam Hsieh, a manager at Fuh-Hwa Investment Trust Co. in Taiwan. "The profitability of Taiwanese exporters is inextricably linked to U.S. demand."
Uni-President Enterprises Corp. and China Steel Corp. climbed after second-quarter profit jumped from a year earlier. Citigroup Inc. raised its share-price estimate for Uni-President.
The Taiex index added 127.89, or 1.5 percent, to close at 8,771.21 in Taipei yesterday, its biggest advance since August 23. About four stocks gained for each that dropped. Futures due in September rose 1.8 percent to 8,700.
Acer, the world's fourth-largest personal-computer maker, advanced NT$2, or 3.6 percent, to NT$57.10. Asustek Computer Inc., Taiwan's largest maker of boards that connect the chips in personal computers, rose NT$2.80, or 3 percent, to NT$95.10.
The Fed is "closely monitoring" markets and is ready to "act as needed," Chairman Ben S. Bernanke wrote in an August 27 letter sent to Senator Charles Schumer, a New York Democrat.
Uni-President, Taiwan's biggest processed food maker, jumped NT$2.35, or 6.9 percent, to NT$36.25. The company's second-quarter profit surged 114 percent from a year earlier to NT$2.3 billion, according to figures derived by Bloomberg from the half-year result announced by the company on Wednesday. Uni-President's profit in the first half was NT$4.98 billion, the company said in a filing on Wednesday.
Andre Chang, an analyst at Citigroup, raised his share-price estimate to NT$41 from NT$33.90, citing the better-than-expected second-quarter profit. Uni-President "beat our forecast by 79 percent," Chang wrote in a report dated Wednesday.
China Steel gained NT$1.50, or 3.6 percent, to NT$43. China Steel posted a 57 percent increase in its second-quarter profit from a year earlier to NT$13.1 billion, according to figures derived by Bloomberg from the half-year result reported by the company.
Elsewhere, Inventec Appliances Corp., which assembles Apple Inc.'s iPods, rose NT$4.30, or 7 percent, to NT$66.10. Inventec may win orders to assemble new versions of the iPod. Apple e-mailed invitations Wednesday to a September 5 event that shows a silhouetted dancer carrying an iPod, suggesting the company may debut new models, according to analysts including Goldman Sachs Group Inc.'s David Bailey.
"It makes sense Inventec Appliances will continue to assemble hard-disk drive-based iPods," said Andrew Wang, who helps manage the equivalent of US$1.2 billion at Prudential Financial Securities Investment Trust Enterprise in Taipei.


Updated : 2021-03-05 17:42 GMT+08:00