Taipei shares close higher on Intel gains/NASDAQ

TAIPEI (AFX-ASIA) - Share prices closed higher in heavy trade, with sentiment improved by Intel's gains in after-hours trade following its strong first-quarter results and by NASDAQ's modest rebound, dealers said.	    Despite TSMC chairman Morris Chang's remarks that the company may see a lower utilisation rate in the second quarter, TSMC still managed to gain ground on the Intel lead, they said. 	    Foreign investors' position-building in TSMC yesterday also bolstered sentiment towards the stock and the broader electronics sector, they added.	    The weighted index closed up 76.66 points or 1.41 pct at 5,508.61, off a high of 5,523.72. 	    Volume was 1.90 bln shares worth 75.24 bln twd. Advancers led decliners 315 to 172, with 99 stocks unchanged. 	    Some 26 stocks closed limit-up and five limit-down. The electronics, cement, financial, food, paper, textile and petrochemical sectors were up 2.04 pct, 0.91 pct, 0.85 pct, 0.31 pct, 0.15 pct, 0.12 pct and 0.02 pct, respectively.	    The construction sector was down 0.10 pct.    The Taiwan dollar closed the morning session at 32.916 against the U.S. dollar, from yesterday's close of 32.926.	    "Expectations that NASDAQ will follow Intel's after-hours rally tomorrow convinced local investors to inject momentum into TSMC and Intel suppliers," Sen Yen Securities Investment Consulting vice chairman Samson Chueh said.	    He said foreign investors showed interest in bellwether stocks, adding to the momentum.	    "Some foreigners built positions in stocks such as TSMC for the long-term."	    TSMC closed up 1.50 twd at 85.00.  Chueh said he sees the broad market moving within 5,400-5,600 points ahead of first-quarter corporate results announcements.	    Warburg Dillon Read Securities managing director Francis Yu also foresees rangebound trade in the near term as investors await first-quarter results. "The downside risk should not be major," he said.	    But he added that an absence of major economic fundamental improvements will limit the upturn, noting there is nothing exciting on the economic front.	    Bellwether electronics stocks will be the likely target of foreign investors if they channel new funds into Taiwan, Yu said, but added that as to when they will make fresh equity investments is another question. 	    UMC added 0.80 to 50.50 and Nanya Technology rose 0.80 to 35.00 despite the SFC having shelved its rights issue application.	    Asustek was limit-up 10.00 at 160.00 and VIA rose 5.00 to 326.00 after the Investment Commission approved China investment applications by both companies.	    Chunghwa Telecom rose 0.50 to 64.50 and Systex added 0.50 to 69.50.	    Shinkong Life lost 0.10 to 25.60 while Hsinchu International Bank added 0.10 to 5.30.	    USI Far East was flat at 7.60 twd after reporting 2000 parent results.	    Walsin Lihwa rose 0.05 to 14.30 and ProMOS added 1.00 to 37.20 after a Walsin Lihwa unit acquired 2.50 mln shares in ProMOS.	    ASE rose 0.70 to 28.10. 

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