China Airlines leads decliners after Chen's comment

Stocks declined, paced by China Airlines Co (華航), on concern the nation may delay negotiations to open direct transport links with China.

President Chen Shui-bian (陳水扁) said yesterday that China miscalculated in saying non-government organizations should negotiate the opening of direct links.

He said any opening must be approved by the government.

"Direct links aren't going to happen so fast," said Johnson Chang, who manages NT$5 billion (US$144 million) in stocks at Waterland Asset Management Co (國票投信). "Chen's speech provides an excuse to sell."

The TAIEX dropped 17.58, or 0.4 percent, to close at 4,566.10. Almost seven stocks fell for every four that rose. The total value of trade was NT$73.52 billion.

China Airlines fell NT$0.40, or 2.6 percent, to NT$14.90. The stock has risen 42 percent since Oct. 15, compared with an 11 percent advance in the main index.

Taiwan Semiconductor Manu-facturing Co (台積電) rose NT$0.70, or 1.5 percent, to NT$47.70. The US-traded shares of the world's largest supplier of made-to-order chips surged 9.4 percent to US$8.85 yesterday after a report by the Semiconductor Industry Association showed industry sales jumped 21 percent in the third quarter.

Quanta Computer Inc (廣達電腦) rose NT$2, or 2.7 percent, to NT$75. The notebook-computer maker expects that sales reached NT$13 billion last month, 25 percent higher than a year earlier.

CTB Financial Holding Co (兆豐金控) fell NT$0.40, or 2.4 percent, to NT$16.40. The owner of Taiwan's 12th-largest lender by assets plans to bid for the 32 percent stake of International Commercial Bank of China (中國商銀) being auctioned by the government tomorrow. CTB plans to pay for the stake using loans and bonds.

Chunghwa Picture Tubes Ltd (中華映管) rose NT$0.15, or 1.1 percent, to NT$14. The maker of flat-panel displays plans to start shipping half its flat panels to Hon Hai Precision Industry Co (鴻海精密), which will assemble them at its plants in China to make flat-panel televisions, a Chinese-language newspaper reported.

Fwu Sow Grain Products Co (福壽實業) rose NT$0.10, or 2.3 percent, to NT$4.43. The maker of soybean oil, pet food and poultry feed boosted its pre-tax profit forecast almost threefold to NT$50 million after prices rose.

Wintek Corp (勝華科技) rose NT$0.40, or 1.3 percent, to NT$31.80. The company said October sales more than doubled from a year earlier to NT$1 billion.

Yulon Motor Co (裕隆汽車) rose NT$0.80, or 2.3 percent, to NT$36.10. The automobile company said pre-tax profit in October more than doubled from a year earlier to NT$443 million.