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Taiex closes up on bets Ma to be cleared of charges

Taiex closes up on bets Ma to be cleared of charges

Taiwan's stocks rose yesterday on speculation the leading candidate in next year's presidential election will be cleared of corruption charges today, enabling him to run for office.
More than nine times as many stocks gained as fell, with Hon Hai Precision Industry Co. and Taiwan Semiconductor Manufacturing Co. leading the advance. The High Court will rule on charges against Ma Ying-jeou, frontrunner in the March election, at 10 a.m. local time today, according to senior Judge Wen Yau-yuan.
"Investors are showing their confidence in Ma winning in court," said Phil Chen, a manager Grand Cathay Securities Investment Trust Co. in Taipei. "A favorable ruling will remove a major political uncertainty, allowing investors to buy stocks according to their earnings."
Macronix International Co., the Taiwanese chipmaker that counts Nintendo Co. among its clients, rose after saying it will sign a contract with Qimonda AG to jointly develop chips.
The Taiex index climbed 157.33, or 1.9 percent, to close at 8,313.72 in Taipei yesterday. Futures due in January added 1.7 percent to 8,322.
Hon Hai Precision Industry Co. gained NT$4, or 2 percent, to NT$200. Taiwan Semiconductor Manufacturing Co. climbed NT$2.20, or 3.7 percent, to NT$61.70. Formosa Plastics Corp. or PVC, advanced NT$1.90, or 2.1 percent, to NT$90.90.
Should Ma, of the opposition Kuomintang party, be found guilty and sentenced to 10 or more years in prison, he will be disqualified as a candidate, according to Taiwan's election laws. Ma will also be barred from standing if found guilty on the lesser charge of breach of trust.
Ma is charged with misusing NT$11.2 million of city funds while he was mayor of Taipei. He has pledged to focus on the economy and improve ties with China if elected.
The District Court cleared Ma of all charges on August 14. Prosecutors appealed the decision and could do so again after today's ruling. Ma leads Democratic Progressive Party candidate Frank Hsieh by 23 percentage points, according to the latest poll by cable station TVBS.
Yuanta Financial Holding Co. climbed NT$0.90, or 4.6 percent, to NT$20.40. Formosa Petrochemical Corp. rose NT$2.30, or 2.5 percent, to NT$96.30.
Macronix, maker of semiconductor chips that store songs and pictures in consumer-electronic products, rose NT$0.90, or 6.7 percent, to NT$14.35. The chipmaker plans to sign a contract with Munich-based Qimonda "in the near future" on developing flash-memory chips, the company said on Wednesday.
The Economic Daily News said yesterday that the two companies will jointly make so-called NAND flash chips, faster and more advanced than the NOR chips that Macronix now makes.


Updated : 2021-05-07 09:17 GMT+08:00