TAIEX falls for fourth day in a row

The TAIEX fell for the fourth day, reversing earlier gains. Formosa Plastics Corp (台塑) and Taiwan Styrene Monomer Corp (台苯) declined on concern that rising crude prices will boost their raw material costs.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) rose after the US said coalition forces are moving toward the Iraqi capital. The shares also tracked gains in the US. The Standard and Poor's 500 Index added 1.2 percent after reports of the US-led advance to as close as 80km to Baghdad.

The TAIEX shed 2.78, or 0.1 percent, to 4,496.05. The index rose as much as 0.9 percent in intra-day trading. About five stocks rose for every four that declined. Shares worth NT$30.6 billion (US$880 million) changed hands, the lowest volume since Oct. 16, 2001.

"Most investors rather stay sidelined to monitor the development in Iraq," said Mike Shiao (蕭光一), who manages the US$12 million Taiwan Select Growth Fund at Invesco Taiwan Ltd (景順投信).

MSCI Taiwan futures for March delivery in Singapore rose 0.1 percent to 192.60, while the Taiwan Futures Index declined 0.1 percent to 4,470.

Formosa Plastics shed NT$0.10, or 0.2 percent, to NT$45.40, its third consecutive day of decline. Taiwan Styrene dropped NT$0.70, or 2.3 percent, to NT$29.30.

Crude oil for May delivery rose as much as NT$0.69, or 2.5 percent, to US$28.66 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at US$28.55 a barrel at 1:29pm in Singapore.

TSMC, the world's largest maker of computer chips on a subcontracting basis, rose NT$0.40, or 0.9 percent, to NT$47. Its US traded shares added 1.8 percent to US$8.09 yesterday, equivalent to NT$56.23.

"Many investors will turn to movements in the US market for direction," said Simon Chao (趙永宏), who manages US$18 million in equities at President Investment Trust Corp (統一投信).

Billionton Systems Inc (互億科技), rose NT$1.40, or 6.7 percent, to NT$22.30. United Microelectronics Corp (聯電) bought 3.5 percent of Billionton, a maker of multimedia products, to share resources and lower costs, a local newspaper reported, citing no one.

Yieh Hsing Enterprise Co (燁興) fell NT$0.45, or 6.7 percent, to NT$6.30. The company yesterday offered to swap its own shares with privately held Yieh United Steel Corp (燁聯) to take over the rival steelmaker.