TAIEX falls on fears of possible slowdown in 3Q info-tech demand

Taiwan's benchmark TAIEX index fell yesterday, paced by AU Optronics Corp (友達光電), after the flat-panel display maker said prices and shipments will drop in the third quarter as demand slows.

The TAIEX fell 20.50, or 0.4 percent, to 4700.23. More than three stocks fell for every two that rose. The total value of trade was NT$68.78 billion.

"Investors are lowering their forecasts on expectation the company's profit will start falling from now on," said Jean Yeh, who manages NT$700 million in stocks at Grand Cathay Securities Investment Trust Co (大華投信). "We're buying stocks in companies with operations in China because growth in that market is much clearer than in the electronics industry."

AU Optronics slid NT$0.70, or 2.6 percent, to NT$26.10. The company said flat-panel display shipments will fall about one fifth and prices by about one 10th in the third quarter as computer demand wanes and customers' inventories rise.

Arima Computer Corp (華宇電腦) gained NT$1.10, or 6.6 percent, to NT$17.70 on local media reports that the notebook-computer maker won new orders from Hewlett-Packard Co to supply computers for the Christmas season, beating out rivals Quanta Computer Inc (廣達電腦) and Compal Electronics Inc (仁寶電腦). Quanta fell NT$2, or 2.6 percent, to NT$74.50.

Siliconware Precision Industries Co (矽品精密) rose NT$0.80, or 4.5 percent, to NT$18.60. The chip assembler turned to a second-quarter NT$185 million profit, beating some analysts' estimates.