Nov. 29 (Bloomberg) -- Taiwan’s Taiex Index gained 55.02, or 0.7 percent, to 8,367.17 at the 1:30 p.m. Taipei trading close.
Election-related stocks: China Airlines Ltd. (2610 TT), Taiwan’s largest carrier, jumped 6.8 percent to NT$24.25, after the ruling party Kuomintang won three of five seats in the mayoral elections on Nov. 27, prompting speculation President Ma Ying-jeou will extend pro-China policies.
Formosa International Hotels Corp. (2707 TT), the island’s largest hotel operator, increased 5 percent to NT$507, the highest since Oct. 26. EVA Airways Corp. (2618 TT), the second-largest carrier in Taiwan, climbed 5 percent to NT$34.50, the highest since March 24, 2008. Taiwan Fertilizer Co. (1722 TT), which owns large amounts of land, advanced 3.7 percent to NT$112.50.
“Investors think cross-strait policies will continue after the election results and hence boost related these shares,” Sam Hsieh, a Taipei-based fund manager at Fuh Hwa Investment Trust Co., who helps oversee the equivalent of $8.2 billion.
Chimei Innolux Corp. (3481 TT) gained 1.5 percent to NT$40.90. Taiwan’s largest maker of liquid-crystal displays was raised to “buy” from “hold” at BNP Paribas, which said the company is “well poised for a rebound” after it resolved design issues with its light-emitting diodes and as panel order forecasts climb. The brokerage raised its share-price estimate for Chimei Innolux to NT$48 from NT$39.80, according to a report by Szeho Ng.
Largan Precision Co. (3008 TT) surged 5.7 percent to NT$653, the highest since Sept. 14, amid speculation it may be the sole lens supplier for the new version of Apple Inc.’s iPad, UBS AG said in a sales note today. Charles Chiu, a spokesman for the company, didn’t immediately answer calls at his office.
To contact the reporter on this story: Weiyi Lim in Taipei at Wlim26@bloomberg.net
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