Stocks rise on bets Ma cleared of charges

Taiwan's stocks rose yesterday on speculation the leading candidate in next year's presidential election will be cleared of corruption charges today, enabling him to run for office.

More than nine times as many stocks gained as fell, with Hon Hai Precision Industry Co. and Taiwan Semiconductor Manufacturing Co. leading the advance. The High Court will rule on charges against Ma Ying-jeou, frontrunner in the March election, at 10 a.m. local time today, according to senior Judge Wen Yau-yuan.

"Investors are showing their confidence in Ma winning in court," said Phil Chen, who manages US$154 million at Grand Cathay Securities Investment Trust Co. in Taipei. "A favorable ruling will remove a major political uncertainty, allowing investors to buy stocks according to their earnings."

Macronix International Co., the Taiwanese chipmaker that counts Nintendo Co. among its clients, rose after saying it will sign a contract with Qimonda AG to jointly develop chips.

The TAIEX index climbed 157.33, or 1.9 percent, to close at 8,313.72 in Taipei. The measure has risen 6.3 percent this year, on course for a fifth annual increase. Futures due in January added 1.7 percent to 8,322.

Hon Hai Precision Industry Co., Taiwan's biggest electronics company, gained NT$4, or 2 percent, to NT$200. Taiwan Semiconductor Manufacturing Co., the world's biggest supplier of made-to-order chips, climbed NT$2.2, or 3.7 percent, to NT$61.70. Formosa Plastics Corp., the world's second-largest maker of polyvinyl chloride, or PVC, advanced NT$1.9, or 2.1 percent, to NT$90.9.

Should Ma, of the opposition Kuomintang party, be found guilty and sentenced to 10 or more years in prison, he will be disqualified as a candidate, according to Taiwan's election laws. Ma will also be barred from standing if found guilty on the lesser charge of breach of trust.

Ma is charged with misusing NT$11.2 million of city funds while he was mayor of Taipei. He has pledged to focus on the economy and improve ties with China if elected.

The District Court cleared Ma of all charges on Aug. 14. Prosecutors appealed the decision and could do so again after tomorrow's ruling. Ma leads ruling Democratic Progressive Party candidate Frank Hsieh by 23 percentage points, according to the latest poll by cable station TVBS, published Sept. 19.

Yuanta Financial Holding Co., Taiwan's largest brokerage company, climbed NT$0.9, or 4.6 percent, to NT$20.4. Formosa Petrochemical Corp., the island's largest oil refiner by market value, rose NT$2.3, or 2.5 percent, to NT$96.3.

Macronix, maker of semiconductor chips that store songs and pictures in consumer-electronic products, rose NT$0.9, or 6.7 percent, to NT$14.35. The chipmaker plans to sign a contract with Munich-based Qimonda "in the near future" on developing flash- memory chips, the company said in an e-mailed statement Wednesday.

The Economic Daily News said yesterday that the two companies will jointly make so-called NAND flash chips, faster and more advanced than the NOR chips that Macronix now makes.

Nediatek Inc., the world's largest supplier of chips for DVD players, climbed NT$7, or 1.8 percent, to NT$400.5. Andrew Lu, an analyst at Citigroup Inc., reiterated his "buy" recommendation for Mediatek, the world's largest supplier of chips for DVD players, with a share-price forecast of NT$675, according to a report dated yesterday.