Chinatrust leads decline as stocks fall for third day

Taiwan stocks fell for a third day, led by Chinatrust Commercial Bank (中國信託銀行), on concerns lenders' 24 percent gain as a group this month was excessive given that the slowing economy may increase their non-performing loans.

The TAIEX dropped 107.23, or 2 percent, to 5,221.96, bringing its three-day loss to 5 percent. Eight stocks fell for every one that rose. Banks and insurers accounted for 46 percent of the index's decline.

The total value of trade yesterday was NT$115 billion (US$3.3 billion), down 21 percent from yesterday. Chinatrust, the second-biggest lender by market value, fell NT$1.50, or 6.6 percent, to NT$21.30.

First Commercial Bank (第一銀行), the biggest listed lender by assets, fell NT$1.60, or 6.7 percent, to NT$22.30. United World Chinese Commercial Bank (世華銀行), the seventh-biggest listed lender by assets, fell NT$1.50, or 6.8 percent, to NT$20.60.

Made-to-order chipmakers gained after Motorola Inc said it will eliminate 4,000 positions by closing some chip plants as it farms out production to contractors and generates more revenue from licensing chip designs in order to return to profitability next year.

Taiwan Semiconductor Man-ufacturing Co (台積電), the biggest made-to-order chipmaker, rose NT$3, or 3.6 percent, to NT$85.50. United Microelectronics Corp (聯電), the No. 2 made-to-order chipmaker, rose US$0.30, or 0.7 percent, to NT$46.80.

Telecommunication companies were mixed after the telecommunications regulator said seven companies applied for five third-generation mobile-phone licenses, which may push bids higher.

Chunghwa Telecom Co (中華電信) fell NT$1, or 1.8 percent, to NT$54. Far EasTone Telecommunications Ltd (遠傳電信) rose NT$3.10, or 6.3 percent, to NT$52.50. Taiwan Cellular Corp (台灣大哥大) fell NT$1.70, or 3.6 percent, to NT$45.50.