TSMC leads market drop

Taiwan's stocks fell, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on concern business spending in the US, Taiwan's second-biggest export market after China, remains sluggish.

Chinatrust Financial Holding Co (中國信託金控) climbed. The company's lending unit, Taiwan's largest credit-card issuing bank, expects a NT$20 billion (US$574 million) profit next year, a local newspaper reported yesterday, citing the bank's president.

The TAIEX shed 22.90, or 0.5 percent, to close at 4,572.77. Almost four stocks fell for every three that gained. Trading was worth NT$65.4 billion, 16 percent less than the daily average in the past three months.

TSMC, the world's largest supplier of made-to-order chips, dropped NT$1.50, or 3.3 percent, to NT$44.50.

Chinatrust Financial rose 5.4 percent, to NT$29.10. Chinatrust spokesman Michael Jong (鍾隆吉) said the bank will be able to meet its profit target this year. He declined to comment on next year's target before official forecasts are released.

Formosa Plastics Corp (台塑) rose NT$1.70, or 3.7 percent, to NT$47.30. The flagship of the nation's largest industrial group owns a third of Formosa Petrochemical Corp, which said last week it's planning to sell shares in an initial public offering next year.

Asustek Computer Inc (華碩電腦) slid NT$2, or 3.1 percent, to NT$63. Taiwan's largest maker of boards holding the chips in computers expects its gross margin, or sales minus the cost of production, will fall as customers demand lower prices even though shipments may rise about 63 percent next year, a local newspaper reported.

Asustek officials couldn't be reached to comment.

"We're looking at whether profit will increase even if sales increase," said Roger Chiao, who helps manage NT$5.5 billion of equities at Capital Investment Trust Corp (群益投信).

D-Link Corp (友訊) fell NT$0.90, or 3 percent, to NT$28.80. The communications equipment maker plans to buy back as much as NT$4.4 billion of its shares, or as many as 25.8 million shares at up to NT$35 each, through Feb. 20.

E.Sun Financial Holding Co (玉山金控) rose NT$0.90, or 6.7 percent, to NT$14.40. The bank and brokerage business said it expects net income of NT$4.4 billion for next year.

Evergreen Marine Corp (長榮海運) rose NT$1.30, or 6.8 percent, to NT$20.40. The owner of Taiwan's fourth-largest shipping line by capacity is "cautiously optimistic" on next year's sales and profit outlook on expected freight-rate increases next year, it said in a statement to the Taiwan Stock Exchange.

Goldsun Development & Construction Co (國產建設) fell NT$0.16, or 4 percent, to NT$3.85. The Taiwan maker of building materials owns more than two-fifths of TransAsia Airways (復興航空), whose Macau-bound cargo jet crashed in the Taiwan Strait in bad weather on the weekend.

HannStar Display Corp (瀚宇彩晶) dropped NT$0.30, or 3 percent, to NT$9.70. Taiwan's fourth-largest maker of flat-panel displays plans to raise US$200 million selling bonds convertible into shares to overseas investors to pay debt and buy machinery.

Mitac Technology Corp (神基科技) fell NT$0.50, or 1.9 percent, to NT$26.50. The notebook-computer maker cut its net income forecast for this year to NT$701 million from a previous NT$824 million forecast. The company projects a lower net income of NT$508 million for next year.

Nanya Technology Corp (南亞科技) fell NT$1, or 4.6 percent, to NT$21. Taiwan's largest maker of high-speed computer- memory chips plans to sell 400 million shares to overseas investors to repay debt and buy chipmaking machines.