TSMC leads market down on chip-sales woes

Stocks had their biggest one-day drop this year, paced by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), on concern demand for chip-related products will remain sluggish.

Chinatrust Financial Holding Co (中信銀金控) also fell. Company officials, including the chairman and president, plan to sell NT$314 million (US$9.1 million) of shares in the company, the Taiwan Stock Exchange said in a statement.

The TAIEX dropped 84.73, or 1.7 percent, to close at 4,972.59. Almost 10 stocks fell for every three that gained. The value of trade was NT$92.5 billion.

TSMC, the world's No. 1 supplier of made-to-order chips, lost NT$0.50, or 1 percent, to NT$48.90. MediaTek Inc (聯發科技), the world's biggest designer of chips for DVD players, slid NT$1, or 0.4 percent, to NT$283. Both companies announce fourth-quarter results this week.

"Everybody isn't really clear about their outlook," said Katherine Chen, manager of about NT$900 million in stocks at International Investment Trust Co (國際投信).

"It will be more useful if companies like TSMC and MediaTek provide a more optimistic outlook during their investors meetings in the next two days," Chang said.

Chinatrust dropped NT$1.40, or 4.4 percent, to NT$30.60.

Chairman Jeffrey Koo (辜濂松), president Jeffrey Koo, Jr. (辜仲諒) and nine other company officials plan to sell 9.82 million shares, or 0.2 percent of Chinatrust, the Taiwan Stock Exchange said in a statement. The group of 11 will own 8.2 percent of Chinatrust after the sale.

Cathay Financial Holding Co (國泰金控) rose NT$1.30, or 2.9 percent, to NT$46.40. The company said it will post a NT$5 billion one-time gain in the form of a special reserves write-back, aided by a Ministry of Finance rule change.

The one-time gain, which will be about NT$3.8 billion after deducting tax, will help the company meet its 2002 net income forecast of NT$13 billion, said spokesman Lee Chang-ken (李長庚).

Fubon Financial Holding Co (富邦金控) dropped NT$1, or 3.2 percent, to NT$30.

The company had preliminary profit of NT$9.1 billion last year, said chief financial officer Victor Kung (龔天行). That's less than its earlier net income forecast of NT$10.8 billion for 2002.

Nanya Technology Corp (南亞科技) fell NT$0.20, or 1 percent, to NT$20.50.

A chip-clearing house said last week the selling price of the most widely produced computer-memory chips may extend their 16 percent decline in the past week.