Taiwan stocks end flat; tourism shares, Chi Mei gain

TAIPEI, Nov 12 (Reuters) - Taiwan stocks edged up 0.04 percent on Thursday as gains in tourism shares and LCD maker Chi Mei Optoelectronics offset selling in tech heavyweights such as Hon Hai following recent rallies. The main TAIEX share index climbed 2.87 points to end at 7,670.93, after rising for four straight sessions and hitting a 2-week closing high on Wednesday. "Foreign investors contributed to a steady inflow into the market based on overall bullish sentiment, but temptation to take profit grew following tech shares' recent gains," said John Chiu, a vice president at Fuh Hwa Securities Investment Trust. Turnover rose to T$111 billion ($3.44 billion) from Wednesday's T$102 billion. Analysts said attractive valuations and a strong sector outlook prompted buying in some LCD shares. LCD maker Chi Mei Optoelectronics surged 4.96 percent, helping push the broader optoelectronics sub-index 0.58 percent higher. Innolux Display, the world's No.2 LCD monitor maker, ended 0.64 percent higher. Innolux is set to sign a T$48 billion ($1.5 billion) syndicated loan with 19 banks next Tuesday, two sources with knowledge of the deal told Reuters on Wednesday.. Leofoo Development Co and other tourism plays added gains to the broader board. Leofoo jumped more than 4 percent on a local newspaper report that more tourists from China were expected to visit the island next year. Electronics parts giant Hon Hai dropped 1.13 percent on profit taking from a recent rally, helping send the electronics sub-index 0.08 percent lower. ProMos Tech, Taiwan's NO.3 DRAM memory chipmaker, slumped 6.7 percent on profit taking and negative sentiment after lawmakers vetoed a plan to inject government funds to state-backed chipmaker TIMC. Lower weighting on the MSCI Taiwan Index also prompted selling, analysts said. On Thursday, MSCI deleted 6 stocks from its Taiwan index, including chip designer VIA Technologies and security services provider Taiwan Secom Co Ltd. (Click for the list of MSCI deletions]) VIA Technologies slumped nearly 4 percent, while Taiwan Secom shed 3.13 percent. "Falls in shares that were kicked off Taiwan's MSCI list weighed on the overall market and kept some foreign and domestic investors on the sidelines," said Fuh Hwa's Chiu. ---------------------TAIEX IN PERSPECTIVE------------------ Move on day 0.04 pct Close on day 7,670.93 2009 intraday high 7,811.92 2009 intraday low 4,164.19 All-time high 12,682.41 12 FEB 1990 ------------------------------------------------------------- For a table of foreign trading in Taiwan stocks, double-click on ((Reporting by Joan Hsu; Editing by Jonathan Hopfner)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia...... Japan........ S.Korea.... S.E.

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