Taiwan stocks hit 2-month high; Chi Mei, Great Wall up

(Updates indexes, adds details, quote)

By Sheena Lee

TAIPEI, Sept 29 (Reuters) - Taiwan stocks rose 0.7 percent
on Saturday to touch a two-month closing high, led by shares
such as Chi Mei (3009.TW) after the LCD maker said it would buy
a stake in top computer monitor maker TPV Technology (0903.HK).

On the rare weekend trading day, the main TAIEX share index
gained 64.57 points to end at 9,476.52, its highest
since July 26. The electronics sub-index .TELI rose 0.62
percent, and the bank and insurance index .TFNI advanced 1.4
percent.

Turnover was moderate at T$124.75 billion ($3.8 billion),
lower than T$172.61 billion in the previous day. The market is
open on Saturday to make up for a holiday earlier this week.

"The market is steadily going up, but there's pressure at
9,500 points, and a concern may be that the firming of the
Taiwan dollar against the U.S. dollar may affect some tech
exporters," said Alvin Teng, a research manager at Sinopac
Securities.

For the Taiwan dollar report, click on [ID:nTP67233]

"The index is making up for some loss yesterday, but
pressure has emerged as we go into the fourth quarter, since
investors are closely waiting for earning reports from the
U.S.," said Michael On, managing director at Beyond Asset
Management, which manages about $60 million.

Shares of Chi Mei Optoelectronics Corp rose 2.64 percent
after the island's second-largest LCD maker announced a plan to
buy a stake in TPV Technology (TPVH.SI). (Click [ID:nL27818995]
for details)

On said the index should trade at between 9,300 and 9,600
points next week, and that China-concept stocks have also been
performing well amid a rise in mainland issues.

Shares of food services firm Great Wall Enterprise
(1210.TW), which sells many of its products to China, rose by
the daily 7 percent limit.

The company's spun-off unit, DaChan Food (Asia) Ltd, plans
to raise up to $119 million in an initial public offering in
Hong Kong next week. [ID:nHKG83187]

HOT STOCKS

-- Quanta Computer (2382.TW) advanced 0.78 percent, while
rival Compal Electronics (2324.TW) erased earlier gains and
lost 0.41 percent after the Economic Daily News reported that
the two laptop PC makers could post record output in September,
with Quanta possibly surpassing 3 million units and Compal 2
million units.
---------------------TAIEX IN PERSPECTIVE--------------------

Move on day 0.69 percent

Close on day 9,476.52

2007 intraday high 9,807.91

2007 intraday low 7,306.07

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

For a table of foreign trading in Taiwan stocks,
double-click on [ID:nTP16023]

For a diary of forthcoming events see [TW/DIARY]

For a diary of economic indicators see [TW/ECI\]