Fri, Dec 20, 2002 - Page 11 News List

TAIEX breaks seven-day decline, gains 0.3 percent

BOUNCE TSMC shares slumped 4.4 percent but Hua Nan Financial Holdings surged on a report its attempts to clean up its balance sheet would pay off next year


The TAIEX rose yesterday for the first day in eight. Hua Nan Financial Holdings Co (華南金控) gained on a report the nation's fifth-largest finance company expects profit to surge next year after cleaning up its balance sheet.

Taiwan Semiconductor Manu-facturing Co (台積電) slumped NT$2.10, or 4.4 percent, to NT$45.90. The US-traded shares of the world's largest supplier of made-to-order chips fell 5.5 percent to US$7.35 on Wednesday, their biggest drop since Nov. 11.

"There's no growth story with the electronic stocks, so we're shifting funds into traditional stocks such as steelmakers and financial-related stocks," said Joseph Hsu, who helps manage NT$600 million (US$17 million) in stocks at Fuh Hwa Cheng Ching Capital Management Co (復華證金投顧).

The TAIEX rose 13.30, or 0.3 percent, to close at 4,549.23. The index dropped 6 percent in the previous seven days.

Hua Nan Financial rose NT$1.50, or 6.5 percent, to NT$24.50. The owner of Taiwan's fifth-largest bank by assets, which forecasts a NT$26.3 billion loss this year, expects earnings to rebound next year after it writes off NT$52.4 billion of non-performing loans.

Within the index, more than seven stocks rose for every four that fell. The total value of trade was NT$85.33 billion.

Ability Enterprise Co (佳能) fell NT$1.20, or 4.1 percent, to NT$28.10. The distributor of copiers and facsimile machines for companies such as Canon Inc cut its profit forecast for the year by 36 percent to NT$279.48 million.

Asia Vital Components Co (奇鋐科技) dropped NT$0.50, or 1.3 percent, to NT$39.50. The maker of fan coolers for computers and the chips used inside them plans to sell bonds convertible into shares to overseas investors to raise US$30 million to buy materials from overseas.

Asustek Computer Inc (華碩電腦), the nation's largest maker of boards connecting the chips that run computers, lost NT$2, or 3.2 percent, to NT$61.50. Demand for circuit boards used to make computer motherboards dropped as much as a fifth this week from a month ago, a local newspaper reported, citing circuit-board suppliers.

Some motherboard makers' inventories have risen after shipments last month fell below the companies' expectations, the newspaper reported.

K-Bridge Electronics Ltd (科橋電子) shed NT$0.95, or 6.8 percent, to NT$13. The printed-circuit-board maker plans to sell bonds convertible into shares to overseas investors to raise US$13.5 million to buy materials from overseas.

Mitac International Corp (神達電腦) fell NT$0.10, or 0.7 percent, to NT$13.45.

Demand for electronics products may rise a 10th next year although supply will rise more than 50 percent, the DigiTimes newspaper reported, citing Mitac Vice Chairman Francis Tsai (蔡豐賜). First-quarter demand will probably fall from the fourth quarter, Tsai said.

Prime Optical Fiber Corp (卓越光纖) lost NT$0.05, or 0.5 percent, to NT$10.95. The optical-fiber maker plans to sell bonds convertible into shares to overseas investors to raise US$10 million to build a factory and buy equipment.

This story has been viewed 3000 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top