Stocks declined yesterday as state-controlled banks such as First Financial Holding Co (
The TAIEX fell 14.46, or 0.3 percent, to 4,451.11. Six stocks fell for every five that rose. The Taiwan Futures Index fell 0.2 percent to 4,434.
The Ministry of Finance wants to make the chairmen of the two banks responsible to private shareholders rather than the government before elections later this year. Still, the ministry is planning to support the incumbents, Jerome Chen (
"This is a politically motivated decision to support people that are close to the ruling party to run state-controlled banks," said Reming Yu, chief investment officer at Prudential Securities Investment Trust Co (
"They will only deviate state banks from the government's privatization plans," Yu said.
Computer-memory-chip makers such as Nanya Technology Corp (
First Financial, the owner of the nation's fourth-largest bank by assets, fell NT$0.20, or 1 percent, to NT$20.60. Mega Financial, which owns Chiao Tung Bank (交通銀行), fell NT$0.10, or 0.6 percent, to NT$16.10.
Nanya Technology, the country's largest maker of computer-memory chips, rose NT$0.70, or 3.3 percent, to NT$21.80. Rival Winbond rose NT$0.30, or 2 percent, to NT$15.40.
C-Com Corp (
United Microelectronics Corp (UMC,
Formosa Plastics Group (
Formosa will also sell shares in its oil-refining unit to the public to fund the fourth stage of the complex.
The expansion of the complex will ensure a low-cost supply stream for Formosa units in China as they compete to grab market share there, some analysts said.