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United World leads decliners after Cathay takes stake

Stocks fell for the fifth day in six. United World Chinese Com-mercial Bank (世華銀行) dropped after Cathay Financial Holding Co (國泰金控) bought enough shares to count it as a unit.

"Now that Cathay has enough shares to control the bank, no one wants to buy United World," said Tu Kuei-shiong, who manages NT$300 million in stocks at Lian-shan Investment Management Co.

Cathay Financial paid NT$15.7 billion (US$449 million) to increase its stake in United World to about 28 percent, above the 25 percent level that allows it to count it as a unit.

United World fell NT$1.1, or 4.4 percent, to NT$24. It rallied 5 percent yesterday as Cathay Financial bought the stake.

The TAIEX fell 13.42, or 0.3 percent, to 4,208.80. The index fell for a second week, sliding 5 percent.

Formosa Plastics Corp (台塑), whose share price has fallen 16 percent since Sept. 18, rose NT$0.40, or 1.2 percent, to NT$32.90.

Almost the same number of stocks rose as fell. The total value of trade was NT$45.27 billion (US$1.3 billion), a quarter below the three-month daily average.

Taiwan Semiconductor Manu-facturing Co (台積電) fell NT$0.60, or 1.4 percent, to NT$42.

Yieh Phui Enterprise Co (燁輝) rose NT$0.75, or 6.8 percent, to NT$11.85. The steelmaker increased its 2002 pretax profit target for the second time this year, boosting its forecast 56 percent to NT$2.6 billion.

Wintek Corp (勝華) gained NT$1.70, or 6.8 percent, to NT$26.70. Orient Semiconductor Electronics (華泰電子) dropped NT$0.40, or 6.5 percent, to NT$5.80 after widening its 2002 loss forecast to NT$2.55 billion.
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