Stocks mixed as Wan Hai Lines fall, MediaTek rises

Taiwan's key stock index fell as Wan Hai Lines Ltd (萬海航運) declined after Premier Yu Shyi-kun said direct transport links with China wouldn't resolve all the problems between the two sides.

The TAIEX lost 15.08, or 0.3 percent, to 4574.80. More than two stocks fell for every one that rose. The total value of trade was NT$128.38 billion (US$3.69 billion), the highest since April 25.

Wan Hai Lines fell 6.8 percent to NT$21.90. The shares of Taiwan's biggest shipping company by market value had gained 17 percent since Oct. 17 when Chinese Vice Premier Qian Qichen (錢其琛) told a Taiwan newspaper that China is prepared to make transport links between the two sides an economic, not political issue.

"Taiwan's response damps investors' confidence about the speed of the opening of transport links," said Eric Lai, who manages about NT$900 million in stocks at Fidelity Investment Securities Investment Trust Co. "It gives an excuse to sell transport stocks and book profits."

MediaTek Inc rose 3.3 percent to NT$346. The world's largest designer of chips for DVD players said third-quarter profit rose 37 percent to NT$2.6 billion, meeting analyst expectations.

"It's neutral," said Kevin Peng, who helps manage NT$20 billion in stocks at First Global Investment Trust Co (元大投信), including MediaTek. "We'll need to see what the company says about fourth-quarter and next year's outlook."

AU Optronics Corp (友達光電) slid 6 cents, or 2.8 percent, to NT$20.50. The world's third-largest maker of flat-panel displays had a third-quarter profit of US$870 million, compared with a loss a year ago.