Stocks decline 0.6 percent, led by MediaTek

Taiwanese stocks fell as MediaTek Inc (聯發科技) plunged by its daily limit after some analysts said its future earnings per share will be diluted when the island's second-largest chip designer pays a dividend in cash and stock at the end of the month.

The TAIEX fell 31.02, or 0.6 percent, to 4,888 at the close. More than three stocks fell for every two that rose. The total value of trade was NT$54.8 billion (US$1.61 billion).

MediaTek, which plans to pay a dividend of 400 shares and NT$4000 per 1,000 shares held, fell 6.8 percent to NT$424, after gaining 30 percent since July 26.

"Investors not wanting to participate in the dividend, especially after the stock performed so well in the past few weeks, are getting off now," said Jessica Chang, an analyst at ING Barings Securities Ltd.

Asustek Computer Inc (華碩電腦) fell NT$4, or 4.5 percent, to NT$85.50 on reports that computer circuit-board makers' tax payments will gradually rise as tax holidays expire.

Hon Hai Precision Industry Co (鴻海精密) fell NT$3, or 2.3 percent, to NT$130 after local media said it will start making printers as soon as the end of this year.

Nanya Technology Corp (南亞科技) fell NT$0.50 cents, or 1.4 percent, to NT$34.30. Brand-name computer makers don't see a rise in demand, so they haven't accepted planned chip price rises by semiconductor makers, a Chinese-language newspaper reported.

Walsin Technology Corp (華新科技) fell NT$1.80, or 6.8 percent, to NT$24.70 after Taiwan's high court rejected the company's request to have returned NT$3 billion of assets frozen in February.

Shin Kong Financial Holdings Co (新光金控) fell NT$0.65, or 5.4 percent to NT$11.45 after it posted a net loss of NT$21.3 billion in the first half on Friday.

Realtek Semiconductor Corp (瑞昱半導體) fell NT$3, or 2.7 percent, to NT$108.50 after it lowered its shipments target for the second half as sales grow more slowly than expected.

K Way Information Corp (凱衛資訊) fell NT$0.20, or 2.9 percent, to NT$6.70. The provider of computer services in the finance industry dumped its pretax profit forecast for the year for a NT$7.6 million loss, citing a slower-than-expected recovery.