Stocks fell, paced by exporters such as Asustek Computer Inc (
The TAIEX fell 80.86, or 1.6 percent, to 4921.72, the biggest decline in six weeks.
The benchmark's gained 14 percent so far this quarter. About three stocks fell for every one that gained. July futures on the index fell 1.9 percent to 4925.
"Some investors have started questioning if corporate profits will make the rally sustainable," said Mike Shiao, who manages the US$12 million Taiwan Select Growth Fund at Invesco Taiwan Ltd (
Asustek, Taiwan's largest computer motherboard manufacturer, fell NT$2.50, or 2.7 percent, to NT$89.
Export orders -- indicative of actual shipments in one to three months -- probably rose 1.7 percent from a year earlier, which would be the smallest gain since March of last year, according to economists. Taiwan is due to announce last month's export orders Tuesday.
AU Optronics Corp (
AU Optronics said it plans to sell as much as US$250 million of bonds, which will be exchangeable for its shares.
Some investors are concerned that the company's earnings per share will be diluted if the bonds are converted into shares.
Cathay Real Estate Development Co (
It plans to sell as much as US$160 million of bonds convertible into shares of its affiliate Cathay Financial Holding Co (
Cathay Real Estate will use the funds to top up its capital and expand property development, it said in a statement to the Taiwan Stock Exchange Corp.
Nan Ya Plastics Corp (
The plastics chemicals company said it will sell overseas investors as much as US$240 million of five-year bonds that are exchangeable into shares.
The money raised will be used to buy raw materials overseas.
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