Stocks dropped, led by electronics companies, after Chi Mei Optoelectronics Corp (奇美電子) said this year's profit will plunge 83 percent from a year ago on falling prices of its flat computer panels.
"A glut in flat-panel capacity got worse as demand weakened in the computer industry," said Barro Liao (
"Taiwanese makers will have to cut prices to compete with rivals in [South] Korea," Liao said.
Chang Hwa Commercial Bank (彰化銀行) and First Financial Holding Co (第一金控) led declines among lenders.
The government may ask banks to set aside more funds to cover potential loan losses, as part of stricter rules the government is considering, said Chang Ming-daw (
The TAIEX fell 70.59, or 1.6 percent, to 4,459.81. About four shares fell for every one that gained, with electronics stocks as a group the biggest decliner.
MSCI Taiwan futures for April delivery in Singapore lost 1.8 percent to 190.40. The Taiwan Futures Index declined 1.5 percent to 4,449.
Chi Mei fell NT$0.30, or 1 percent, to NT$28.90. Net income will tumble to NT$836.8 million (US$24 million) from NT$4.7 billion last year, the company said in a statement.
AU Optronics Corp (
Chang Hwa Bank dropped NT$0.30, or 2 percent, to NT$15.10. First Financial, owner of the country's fourth-biggest bank by assets, fell NT$0.40, or 1.8 percent, to NT$22.00.
Chunghwa Telecom Co (中華電信) gained NT$0.50, or 1 percent, to NT$50.50 on its successful shares sale.
Silicon Integrated System Corp. (
* Chi Mei's bad news seemed to have an effect on many electronic companies.
* The government successful sale of Chunghwa shares gave the state-run telecommunications company a 2.6 percent uptick.
Via Technologies Inc (
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