TAIEX declines as Quanta gains

Taiwan's stocks fell, led by automakers such as China Motor Co (中華汽車), on concern the spread of a new disease in China is worsening after Beijing reported more cases.

China reported 13 new cases and two more deaths from severe acute respiratory syndrome as disclosure of the outbreak widened to 15 provinces from 11. The Communist Party fired two top officials for trying to cover up the extent of the disease.

"Investors are dumping companies that count China as a big part of their revenue, fearing the SARS epidemic in China," said Eddie Chiu, who manages the NT$4 billion (US$115 million) Hitech Fund at First Global Investment Trust Co (元大投信). "Because of China's dishonest record, some people think the actual SARS cases might be 100 times more than it has now reported."

The TAIEX fell 10.18, or 0.2 percent, to close at 4,648.12. MSCI Taiwan futures for April delivery in Singapore fell 0.4 percent to 200.4, while the Taiwan Futures Index shed 0.1 percent to 4657. About six stocks fell for every five that gained.

China Motor, which makes Mitsubishi Motors Corp cars in Taiwan and China, tumbled NT$4.5, or 6.8 percent, to NT$61.5.

Yulon Motor Co (裕隆汽車), which assembles and distributes automobiles designed by Japan's Nissan Motor Co, dropped NT$2.4, or 5.4 percent, to NT$41.8.

Quanta Computer Inc, Taiwan's largest notebook computer maker, gained NT$2, or 2.9 percent, to NT$72 after a local Chinese-language newspaper reported that Nokia Oyj placed an order to buy mobile phone handsets from the Taiwanese company to cut costs.

Nanya Technology Corp (南亞科技), the nation's largest maker of computer-memory chips, fell US$0.5, or 2.2 percent, to NT$22.5 after it cut its pretax profit forecast for the year by 78 percent.

Nanya Technology cut its pretax profit forecast to NT$2.1 billion and also cut its sales forecast by 22 percent to NT$30.6 billion, it said in a statement to the Taiwan stock exchange after the market closed on April 18.

Cathay Financial Holding Co (國泰金控), Taiwan's largest financial holding company, declined NT$0.2, or 0.5 percent, to NT$43.8 after a local Chinese-language newspaper reported Mega Financial Holdings Co (兆豐金控), which owns Chiao Tung Bank (交通銀行) and International Commercial Bank of China (中國商銀), plans to sell a stake in Cathay Financial to boost profit.

The 144 million shares of Cathay Financial, held by International Commercial Bank, were worth about NT$6.3 billion at Cathay Financial's closing price of NT$44 on April 18. Mega Financial rose NT$0.1, or 0.6 percent, to NT$17.6.

Mosel Vitelic Inc (茂矽電子), a maker of computer-memory chips, fell NT$0.27, or 6.8 percent, to NT$3.71 after it said on April 18 creditors agreed "in principle" to delay a NT$4.7 billion bond payment due at the end of this month. Mosel, which had NT$755 million in cash at the end of the third quarter, said it plans to raise US$120 million selling bonds convertible into shares to overseas investors to pay debt.