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Quanta nosedives; TAIEX falls to its lowest this year

Stocks dropped, led by exporters such as Quanta Computer Inc (廣達電腦), after US Secretary of State Colin Powell said a US invasion of Iraq may increase terrorist activity at home.

One portfolio manager said yesterday the threat of terrorism in the US will dampen consumer confidence and weigh on companies' earnings.

"The corporate outlook for this year is bleak as a possible war and terrorist attacks will weigh on the world economy and Taiwan's exports," said Simon Chao, who helps manage US$20 million in equities at President Investment Trust Corp (統一投信).

Chao sold shares in textile and other traditional manufacturers.

The TAIEX shed 116.91 to close at 4,507.96, its lowest close this year. More than eight stocks declined for every one that gained. Trading was NT$57 billion (US$1.6 billion), or 33 percent below the daily average in the past three months.

Quanta fell NT$1, or 1.7 percent, to NT$57. Dell Computer Corp is Quanta's No. 1 client. Hon Hai Precision Industry Co (鴻海精密), a computer-cable-connector maker that counts Hewlett-Packard Co as its client, fell NT$3.5, or 3.2 percent, to NT$106.
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