Sat, Jul 12, 2003 - Page 11 News List

China Development, Mega Financial lead decliners

BLOOMBERG

Stocks fell for a third day yesterday, led by lenders such as China Development Financial Holding Corp (中華開發金控) and Mega Financial Holding Co (兆豐金控) on concern the legislature's deferral of government plans to clean up bad loans will derail other planned changes to the financial industry.

The TAIEX shed 42.42, or 0.8 percent, to close at 5,239.96. More than 5.75 billion shares changed hands on a turnover of NT$118.311 billion (US$3.429 billion). About eight stocks fell for every three that gained. For the week, the index gained 1.7 percent.

"The delay is disappointing," said Richard Kao, who has bank stocks like Chinatrust Financial Holding Co (中信金控) among the US$2.9 billion of assets he helps manage at ABN Amro Asset Management Taiwan Ltd.

"We will refrain from investing more money in financial stocks until the discussion on the bailout fund has a more concrete timetable," he said.

The deferral means at least a two-month delay in the government's program to restore investors confidence in the financial industry.

China Development Financial, the nation's largest corporate lender, fell NT$0.75, or 5.2 per-cent, to NT$13.60.

Mega Financial, the country's third largest financial company by market value, fell NT$0.70, or 4.1 percent, to NT$16.60.

China Airlines Co (華航) fell NT$0.15, or 1.1 percent, to NT$14.15.

Chi Mei Optoelectronics Corp (奇美電子), the country's second-biggest maker of flat-panel displays for personal computers, added NT$1.60, or 5.1 percent, to NT$32.80. AU Optronics Corp (友達光電) rose NT$1.90, or 6.4 percent, to NT$31.70.

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