Suppliers for Apple add weight to fall in TAIEX

The bourse fell for the first time in five days, paced by Hon Hai Precision Industry Co (鴻海精密) and other suppliers to Apple Computer Inc, after the maker of the iMac posted its first straight quarterly loss since 1997.

Taiwan Semiconductor Manuf-acturing Co (台積電) and United Microelectronics Corp (聯電), the world's two biggest suppliers of made-to-order computer chips, also dropped on concern that Microsoft Corp and other industry leaders will report earnings today that indicate a recovery in demand has stalled.

"A recovery in demand for electronic products is still uncertain," said Yu Re-ming, chief investment officer at Prudential Securities Investment Trust Co (保誠投信).

"Investors seeking high growth should avoid technology shares for now." Yu invested his NT$400 million (US$12 million) fund in financial and plastic and steel manufacturing companies. He doesn't own any shares of electronics companies.

TAIEX fell 74.41, or 1.5 percent, to close at 4,943.29. Almost two stocks fell for every one that gained. The value of trade was NT$137.4 billion, the highest since April 25 last year.

Hon Hai, the country's largest maker of parts for personal computers whose customers include Apple Computer, fell NT$2.50, or 1.9 percent, to NT$128.50. Quanta Computer Inc (廣達電腦), which makes notebook computers for Apple Computer, fell NT$1.50, or 2.1 percent, to NT$68.50.

TSMC fell NT$1.90, or 3.8 percent, to NT$48.60. UMC dropped NT$0.7, or 3 percent, to NT$22.30.

Chunghwa Picture Tubes Ltd (中華映管) rose NT$0.25, or 1.9 percent, to NT$13.65. the country's third-largest maker of flat-panel displays for personal computers and its rival, Chi Mei Optoelectronics Corp (奇美光電), estimate the shortage of 15-inch displays has reached 20 percent, raising the possibility of a price increase in February, a local newspaper reported.

Chi Mei fell NT$0.3, or 1 percent, to NT$31.40.

First Financial Holding Co (第一金控), the country's largest publicly traded lender by assets, rose NT$1.30, or 5.1 percent, to NT$26.90. Goldman Sachs Group Inc recommended its clients to add financial stocks amid the drawn-out wait for the fundamental recovery to take place, a local newspaper reported.

Formosa Plastics Corp (台塑) fell NT$1, or 2 percent, to NT$48.50. Its oil refining unit will sell gasoline and diesel at lower prices starting today.

The oil company Formosa Petrochemical Corp (台塑石化) cut its domestic oil prices on expectations OPEC will increase output early in February to stem a rally in the crude oil price to a two-year high.