TAIEX hits 10-month low

Taiwan's main stocks slumped to its lowest in 10 months after Intel Corp Chief Executive Craig Barrett said the technology industry is experiencing its "most dramatic recession" in 30 years. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led the fall.

"All the biggest companies are reemphasizing that the industry's still at the bottom, and we may stay there for longer than expected," said Bryan Chiang, who helps manage NT$1.8 billion (US$51.5 million) in stocks at Invesco Taiwan Ltd (景順投信). "That's not good for confidence."

The TAIEX shed 29.04, or 0.7 percent, to 4,162.77, its lowest since Nov. 13. More than five stocks fell for every four that rose. The total value of trade was NT$40.81 billion, the third-lowest this year.

TSMC, whose customers include Intel, dropped 2.4 percent to NT$40.1.

Nan Ya Plastic Corp (南亞塑膠) fell 3 percent to NT$26.2 after US West Coast ports were closed for a second time in four days, disrupting shipments. The nation's largest plastics maker is sending shipments directly to the East Coast of the US to avoid the disruption, adding as many as 10 days to the shipping time.

CMC Magnetics Corp (中環) gained NT$0.1, or 0.7 percent, to NT$14.6. The world's second-largest maker of recordable compact discs forecasts profit margins will rise to more than 30 percent from about 23 percent now as it boosts prices, a Chinese-language newspaper reported, citing CMC Chairman Wong Ming-hsien (翁明顯).

MediaTek Inc (聯發科技) fell NT$2, or 0.7 percent, to NT$300. Rival ESS Technology Inc filed a suit against Taiwan's second-largest chip designer for copyright infringement. MediaTek denied the accusation.

Eva Airways Corp (長榮航空) rose NT$0.45, or 3.6 percent, to NT$12.8. Shipping lines and terminal operators closed US West Coast ports, forcing Taiwan exporters and importers to turn to airlines.

Hsinchu International Bank (新竹國際銀行) rose NT$0.45, or 6.4 percent, to NT$7.45. The lender plans to spend as much as NT$292.4 million to buy back 20 million shares, or 1.6 percent of its outstanding shares, starting today to Nov. 30.

Q-Run Technology Corp (華升電子) rose NT$2.2, or 6.9 percent, to NT$34.2. The unit of Hon Hai Precision Industry Co (鴻海精密) expects monthly sales of as much as NT$4 billion in the fourth quarter after receiving an order to assemble game consoles, a Chinese-language newspaper Web site reported.

Nanya Technology Corp (南亞科技) gained US$0.4, or 1.9 percent, to NT$22. Taiwan's second-largest maker of computer-memory chips by market value may raise contract prices in October if demand surges more than 30 percent, local Chinese-language media reported.

Siward Crystal Technology Co (希華晶體) fell NT$0.5, or 2.5 percent, to NT$19.6. The maker of crystal components used in mobile phones and other electronics products dumped its NT$35.6 million pretax profit forecast for the year for a NT$56.5 million loss.