Taiwan stocks at fresh 1-mth closing high, techs up

* UMC outperforms big board after solid June sales

* TSMC rose before it announced Junes sales loss

* Banks weak as investors cash in profits

* Main board to trade between 6,700-7,000 next week (Updates indexes, add details, quotes)

TAIPEI, July 10 - Taiwan stocks ended up 0.32 percent on Friday, with chipmaker UMC, leading gains in technology shares after it reported an annual rise in June sales.

However, financial shares prevented the big board from climbing higher, as investors booked profits due to a lack of market-boosting news.

The main TAIEX shares index rose 21.68 points to 6,769.86, reaching a fresh one-month closing high, after it briefly rose above 6,800 earlier in the session.

Turnover was thin at T$110 billion compared with Thursday's T$139 billion as investors cautious ahead of earnings releases by major U.S. corporations next week.

"The index pulled back a little as investors sold shares in the financial sector because there really hasn't been much good news lately," said Michael On, a managing director at Beyond Asset Management. "But with the cross-strait forum taking place over the weekend, investors should have something to look forward to."

A cultural and economics forum will be held in the Chinese province of Hunan this weekend, where leaders from Taiwan and China gather to discuss bilateral issues.

The main technology board was the session bright spot, with the semiconductor sub-index rising 0.52 percent.

Taiwan Semiconductor Manufacturing Co rose 1.45 percent before the company announced a fall in June sales on Friday.

United Microelectronics Corp gained 2.16 percent after the company booked its biggest monthly sales in nearly a year on Thursday.

DRAM shares were mixed as Powerchip, Taiwan's top DRAM chipmaker, gained more than 6 percent after getting a $125 million loan. Nanya Technology dropped 1.82 percent, after a report said it was seeking state funding to develop new technologies.

The optoelectronics sub-index rose 0.18 percent, extending a five-session winning streak.

AU Optronics, the world's No.3 flat panel maker, edged up 0.28 percent after a report said the company planned to introduce new-generation flexible displays or e-paper for electronics reading devices in the third quarter this year.

The bank and insurance sub-index lost 0.52 percent after a report said Taiwan's top financial regulator eased real estate investment restrictions on the insurance sector.

Analysts said investors should brace for a bumpy week, as some figures from major corporation in the United States could hurt export-reliant technology shares. --------------------TAIEX IN PERSPECTIVE--------------------

Move on day 0.32 percent

Close on day 6769.86

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]