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Taiwan stocks at 1-week high, tech shares up

Published: 18 Jun 2009 22:58:37 PST

* Market bounces from 1-1/2-month low on Thursday

* HTC leads technology shares higher

* Powerchip limit-down on bond negotiation plan

* Quanta up after report of orders from Apple (Adds details and quotes)

TAIPEI, June 19 - Taiwan stocks rose 1.41 percent on Friday to a one-week closing high, as upbeat U.S. economic data lifted tech and financial shares, but Powerchip <5346.TWO> slid as it tried to reach agreement with bondholders.

The main TAIEX share index <.TWII> closed 86.62 points higher at 6,231.15, its highest close since June 12 and bouncing back from the previous session's 1-1/2-month low.

Turnover hit a three-month low of T$83 billion ($2.5 billion) as investors stayed away following a pull-back of about 3 percent this week that has made the TAIEX one of the world's worst performers during this month.

The financial sub-index <.TFNI> jumped 1.7 percent, with Cathay Financial <2882.TW>, the island's top listed financial holding firm, up 1.5 percent.

Smartphone maker HTC <2498.TW> advanced 2.6 percent, after a local newspaper said HTC and Chunghwa Telecom <2412.TW> will offer a smartphone using Google's <GOOG.O> Android operating system for free to some subscribers.

"HTC has to watch out for new competitors," said Alex Huang, a research director at Mega International Securities.

"HTC's performance has been weak through the year, and the situation may be exacerbated as new competitors enter."

Powerchip, Taiwan's largest DRAM maker, slid 7 percent by its daily maximum limit, bucking the semiconductor sub-index's <.TSII> 0.59 percent advance.

Late on Thursday, Powerchip said it would extend the deadline for bondholders to accept its offer to reset the terms of a $158 million convertible bond that matured on Wednesday, as it had yet to secure agreement from a sufficient number. [ID:nTP4341]

Powerchip's smaller rivals Nanya Technology <2408.TW> rose 1.8 percent while ProMOS Technologies <5387.TWO> lost nearly 1 percent.

HOT STOCKS

-- AU Optronics <2409.TW>, the world's third largest LCD makers, fell 0.32 percent after it announced a plan to build a new plant. [ID:nTP99536]

-- Quanta Computer <2382.TW> rose 1.2 percent after a local newspaper said it has been appointed the sole contract manufacturer for Apple's <AAPL.O> MacBook series in the second half of the year.

Quanta declined to comment on the report but said on Friday it expected shipments to peak between September and November this year. [ID:nTP101788] --------------------TAIEX IN PERSPECTIVE--------------------

Move on day 1.41 percent

Close on day 6,231.15

2009 intraday high 7,084.83

2009 intraday low 4,164.19

All time high 12,682.41 12 FEB 1990 ------------------------------------------------------------

For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358] (US$1=T$32.9)


Source: Reuters

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