Stocks fell, paced by banks such as Hua Nan Financial Holdings Co (華南金控), on concern the pace of financial reforms may slow under Lin Chuan (林全), named as the new finance minister.
``Now that the reforms have come to a halt, people wonder whether Lin will have the confidence to restart them,'' said Max Wen, who helps manage NT$10 billion in stocks at KGI Securities Investment Trust Co (中信投信).
Hua Nan slid NT$1, or 4.6 percent, to NT$21. First Commercial Bank (第一銀行), the largest publicly traded lender by assets, fell NT$0.70, or 3.1 percent, to NT$21.90.
The TAIEX fell 20.43, or 0.4 percent, to close at 4,612.60. Almost five stocks fell for every four that rose. The total value of trade was NT$76.52 billion.
Hon Hai Precision Industry Co (
"Investors had been overbearish on the Christmas shopping season and the first quarter," said Oliver Lee, who helps manage US$120 million in stocks at Far Eastern Alliance Asset Management Co (遠東投信). Lee said he's buying shares of flat-panel-display makers.
Accton Technology Corp (智邦科技) rose NT$1.40, or 3.6 percent, to NT$40. The maker of computer-network equipment said it planned to spend as much as NT$2.5 billion to buy back some 50 million shares, or 8.8 percent of its outstanding shares, over a two-month period starting today.
Advanced Semiconductor Engineering Inc (日月光) rose NT$0.20, or 0.9 percent, to NT$22. The chip packager expects fourth-quarter sales to rise, after last month predicting a 5 percent drop.
Asustek Computer Inc (華碩電腦) rose NT$2.50, or 3.7 percent, to NT$69.50. UBS Warburg raised its rating for the nation's largest maker of boards connecting the chips that run computers to "hold" from its previous rating of "reduce."
Hsinchu International Bank (
Kuo Bin Ceramic Industrial Co (
The maker of ceramic floor and wall tiles widened its pretax loss forecast for the year by 74 percent to NT$129.2 million, citing a slower economic recovery.
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