Thu, Jul 10, 2003 - Page 11 News List

TAIEX drops amid profit-taking on tech stocks

AP AND BLOOMBERG , TAIPEI

Stocks dropped yesterday, amid concerns that the market may be overheating after its recent gains prompting investors to take profits on technology stocks, analysts said.

"The market is a little overheated after yesterday's hefty volume," said Robert Hsieh, a manager at Shinkong Securities Co (新光證券).

The TAIEX shed 9.06, or 0.2 percent, to 5,358.91. About three stocks gained for every two that declined. July futures on the index fell 0.1 percent to 5,375.

Turnover totaled NT$196.58 billion (US$5.72 billion), the highest since January last year.

The market was pressured by declines in heavyweight chipmaker stocks Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (聯電).

TSMC fell after the government and the company raised $822 million selling American depositary receipts at a 0.7 percent discount to the company's US closing price. TSMC fell NT$1.50, or 2.4 percent, to NT$60.50. UMC lost NT$0.70, or 2.5 percent, to NT$27.10.

Hon Hai Precision Industry Co (鴻海精密) rose NT$4.50, or 3.2 percent, to NT$143.50, after saying it will raise US$690 million selling bonds convertible to shares.

"Some investors are betting Hon Hai's major fund-raising plans show the company is confident in expansion again," said Simon Chao (趙永宏), a fund manager at President Investment Trust Corp (統一投信).

BenQ, the nation's largest mobile phone-handset maker, fell NT$1, or 2.3 percent, to NT$42.50 after Acer Inc sold 100 million BenQ shares for US$123 million. Acer sold the stake as it reorganizes to focus on its own brand.

China Steel Corp (中鋼) gained NT$1.10, or 4.4 percent, to NT$26.20, after saying its January to June pretax profit totaled NT$22.33 billion (US$650 million), up sharply from NT$5.16 billion in the same period a year earlier.

Kinpo Electronics Inc (金寶電子), the biggest maker of calculators in the country, rose NT$0.10, or 0.5 percent, to NT$21.20.

Kinpo aims to raise NT$1.2 billion by selling shares of its Thai unit in Taiwan to pay debt. Kinpo plans to offer 10 percent, or 30 million shares, this quarter of Cal-Comp Electronics (Thailand) Pcl as depositary receipts in Taiwan, Kinpo spokesman Teddy Tai said in a phone interview.

Quanta Computer Inc (廣達電腦) rose NT$0.50, or 0.7 percent, to NT$89.50. Quanta sales last month rose to a record as it shipped more products to clients.

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