Taiwan stocks rise, shipping firms lead on China demand

Taiwan stocks rose 0.7 percent on Monday, extending gains from a two-month high, lifted by expectations that cement and shipping firms with exposure in China will continue to benefit from stronger demand on the mainland.

The main TAIEX index <.TWII> was 67.82 points higher at 9,544.34 about one hour into trade, after hitting a two-month closing high on a rare Saturday session.

Leading the way were the transportation sub-index <.TTPI> and the cement sub-index <.TCMI>, which jumped 4.51 percent and 3.11 percent, respectively.


The prospects of transportation and cement firms look bright into 2008 thanks to the strong demand from China, said Sheng Yen, who manages T$6.3 billion (US$194 million) for Franklin Templeton First Taiwan.

Also, investors favor these stocks because they are traded at lower P/E ratios than their peers traded in Hong Kong or China,said Sheng, adding he bought some of the shares today.

Chinese Maritime Shipping (2612.TW: Quote, Profile , Research) rose 5.38 percent and Taiwan Navigation (2617.TW: Quote, Profile , Research) was up 5.77 percent.

Taiwan Cement (1101.TW: Quote, Profile , Research) and Asia Cement (1102.TW: Quote, Profile , Research) also climbed, up 3.97 percent and 2.16 percent, respectively.


Source: Reuters