Stocks decline, paced by China Air

Stocks declined. Transportation stocks such as China Airlines Co (華航) fell after government workers were banned from traveling to Hong Kong, Vietnam and China.

The government imposed the ban because of the risk of exposure to a new respiratory disease that's infected more than 1,400 people worldwide.

``The travel ban will hurt airlines the most because Hong Kong and China are key routes for Taiwanese carriers,'' said Jerry Chen, who manages the equivalent of US$101 million in First Global Investment Trust Co's (元大投信) Excellent Fund.

The TAIEX shed 37.23, or 0.8 percent, to close at 4,477.01. For the week, the index fell 2.4 percent. It was first time the index fell in a week. MSCI Taiwan futures for March delivery in Singapore fell 1.5 percent to 190.00. The Taiwan Futures Index fell 1.0 percent to 4453. About three stocks declined for every two that gained.

China Airlines, which counts Hong Kong among its most profitable routes, fell NT$0.55, or 4.1 percent, to NT$12.90. EVA Airways Corp (長榮航空) fell NT$0.80, or 6.8 percent, to NT$11.00.

Trading was worth NT$32.6 billion (US$935 million), about half the daily average in the past three months.

AU Optronics Corp (友達光電), the world's No. 3 maker of flat-panel displays used in personal computers, fell NT$0.40, or 1.9 percent, to NT$20.40. AU Optronics said it paid ?1.48 billion (US$12 million) for a fifth of Fujitsu Ltd.'s unlisted liquid-crystal display unit.

CTCI Corp (中鼎工程), fell NT$0.30 cents, or 1.4 percent, to NT$22.00. The Taipei City Government on Thursday said five CTCI employees were infected with the respiratory disease, forcing it to shut its head office, giving its other workers a two-day holiday.

Taiwan Life Insurance Co (台灣人壽) fell US$0.10, or 0.3 percent, to NT$30.50 on news that Taiwan Life Asset Management Co, a unit of Taiwan Life Insurance, paid a nominal NT$1 to take over mutual funds managed by Zurich Financial Services AG in Taiwan.