Taiwan's main stocks fell for a fifth day. Quanta Computer Inc (廣達電腦) and Micro-Star International Co (微星) led declines among computer-related companies on concern second-half sales will lag expectations, some investors said.
Sales probably won't rebound during what is usually the strongest season for the industry because of the global economic slump, said Simon Chao, who manages NT$800 million in stocks at President Investment Trust Corp (統一投信).
TAIEX slid 74.78, or 1.7 percent, to 4459.37. Five stocks declined for every one that rose.
Quanta tumbled 6.9 percent, its market limit, to NT$61. Micro-Star tumbled by its 7 percent market limit to NT$87. Its shares have lost about a third of their value this year.
"The proportion of sales in the first and second halves for the computer industry had been at least 45 to 55," said Byran Fon, who counts Micro-Star shares among the NT$460 million he helps manage for Taiwan International Investment Management Co (金鼎投信). "Now it looks more like 50-50."
Fubon Financial Holding Co (富邦金控), Taiwan's No. 2 financial services company, rose NT$1.90, or 6.7 percent, to NT$30.10 on news that Citigroup Inc wants to increase its stake in Fubon to 25 percent from 15 percent.
The following stocks rose or fell.
MediaTek Inc (聯發科技) gained NT$5, or 1.7 percent, to NT$308. Some investors said chip designers' profit may improve as their suppliers cut prices.
"The foundries will cut prices this month," said Louis Lee, who helps manage NT$2 billion at President Investment Trust. MediaTek and rival Realtek Semiconductor Corp (瑞昱半導體) "should benefit."
CMC Magnetics Corp (中環) rose NT$0.30, or 2.6 percent, to NT$11.75. Taiwan's second-largest maker of recordable compact discs said it plans to buy back as much as NT$1.9 billionof its shares at a price between NT$11 and NT$19, the company said in a statement.
Delta Electronics Inc (台達電子), the world's biggest maker of computer power-supply systems, rose NT$0.20, or 0.4 percent, to NT$46.60. Delta said August sales rose 52 percent to NT$2.97 billion from NT$1.95 billion a year ago. Sales increased 50 percent from NT$1.98 billion in the previous month.
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