Last day of the year ends on a low note

Stocks slid for a sixth day in seven, paced by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), on concern profit may decline after reports in the US showed home resales and Chicago-area manufacturing dropped.

"The bad Christmas shopping season means companies will delay placing new orders as they work down inventories," said Belinda Yu, who helps manage NT$8 billion (US$230 million) in shares at Jih Sun Securities Investment Trust Co (日盛投信). "We're avoiding computer and semiconductor-related stocks."

Wan Hai Lines Ltd (萬海航運) gained after the island's second-largest shipping company by market value raised its profit forecast for the year by half. Wan Hai Lines jumped NT$1.40, or 5.3 percent, to NT$28.

The cement sector attracted bargain-hunting interest due to product price hikes, while the auto sector came in for profit-taking after solid gains.

Taiwan Cement Corp (台泥) rose NT$0.15, or 1.5 percent, to NT$10.45. The cement-maker plans to raise prices by 8 percent starting tomorrow, a Chinese-language newspaper said.

China Motor Co (中華汽車) slid NT$2, or 3.1 percent, to NT$63.50. The auto maker gained 183 percent this year, making it the best-performing stock among the 50 biggest companies by market value on the TAIEX.

"Some fund managers are defending their holdings while rivals tried to drag down others' holdings in a competition for fund performance," Grand Cathay Securities (大華證券) vice president Tu Jin-lung said.

"Such seesawing is a common practice on the last trading session of the year as securities investment trust funds calculate funds' performance based on stocks' closing levels for the year."

TAIEX shed 5.30, or 0.1 percent, to close at 4452.45, its lowest since Oct. 22. The benchmark fell 20 percent this year and has dropped 47 percent in the last three years.

TSMC shed NT$0.60, or 1.4 percent, to NT$42.60. The chipmaker's shares tumbled 16 percent this month on concern orders may slow after the holiday season.

Within the index, more than three stocks rose for every two that fell. The total value of trade was NT$40.08 billion, the lowest since Oct. 7.

Realtek Semiconductor Corp (瑞昱) lost NT$1.50, or 1.6 percent, to NT$90 after the chip designer lowered its sales forecast for December by a 10th to NT$670 million. Silicon Integrated Systems Corp (矽統) slipped NT$0.90, or 3.3 percent, to NT$26.50.