TSMC slips, shares end mixed

Taiwan's main stocks fell for a second day after an industry report on Friday showed an index of leading economic indicators had its biggest slide in a year in August. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) declined.

Nanya Technology Corp (南亞科技) rose after chip prices surged.

Government funds also bought shares of computer-memory-chip makers, a Chinese-language newspaper Web site reported.

The TAIEX, which fell as much as 3 percent, shed 16.99, or 0.4 percent, to 4,191.81.More than two stocks fell for every one that rose. The total value of trade was NT$36.21 billion (US$1 billion), the second-lowest this year and 40 percent below the three-month average.

The index of leading economic indicators slipped 1.1 to 103.1 in August, the biggest drop since last September, and its lowest level since April, the Council for Economic Planning and Development reported last Friday.

US consumer confidence in September fell to a 10-month low, a University of Michigan survey showed. The US is the second-largest buyer of Taiwan's computers and other exports.

TSMC, which sold four-fifths of its chips to US customers in the second quarter, dropped NT$0.9, or 2.1 percent, to NT$41.1.

"A slowing global economy has a huge impact on an exporting island like Taiwan," said Li Fang-kuo, head of research at IBT Securities Co (台灣工銀證券), which manages about NT$3 billion (US$86 million) in stocks. "We're avoiding electronics stocks, preferring traditional companies such as car and tire makers."

Nanya Technology rose NT$1.4, or 6.9 percent, to NT$21.6.

The price of a high-speed double-data-rate memory chip rose 6 percent in the past two days, snapping an eight-day, 9.9 percent decline. The chip operates at a speed of 266MHz with capacity for 128Mb of memory.

United Microelectronics Corp (UMC, 聯電) fell NT$0.1, or 0.4 percent, to NT$23.7. The chipmaker denied a newspaper report that it plans to delay installation of equipment at its new plant in Singapore to May, from the end of this year, because of a slower-than-expected recovery in the semiconductor industry.

Leadtek Research Inc (麗臺科技) fell NT$1, or 5.3 percent, to NT$17.8. The maker of communications and computer products slashed its 2002 pretax profit forecast by three-quarters to NT$95.2 million, citing lower-than-expected shipments and prices.

First International Computer Inc (大眾電腦) fell NT$0.15, or 2.4 percent, to NT$6. The company dumped its NT$207 million profit forecast for the year to an audited loss of NT$959.6 million.

Fubon Financial Holding Co (富邦金控) fell NT$0.2, or 0.7 percent, to NT$29. The company plans to spend as much as NT$6.75 billion to buy back as many as 150 million shares that will be set aside for employees.

Mosel Vitelic Inc (茂矽) rose NT$0.4, or 6.5 percent, to NT$6.55. The chipmaker may raise as much as NT$5 billion selling bonds convertible into shares to overseas investors next year to repay debts, a Chinese-language newspaper reported.

Teapo Electronic Corp rose NT$0.55, or 6.3 percent, to NT$9.3. The maker of parts that control the flow of electricity in computers and mobile phones plans to spend as much as NT$39 million to buy back 3 million shares, or 1.6 percent of its outstanding shares, starting today until Nov. 29.