Stocks fell yesterday, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after forecasts from US companies such as Lucent Technologies Inc sparked concern the nation's second-largest trading partner after China may not recover as fast as anticipated in the second half.
"Optimism about the economic recovery has made it more difficult for companies to meet the level of inflated expectations," said Simon Chao (趙永宏), who manages US$17 million at President Investment Trust Corp (統一投信).
An overnight decline in US stocks and an exchange of gun fire between South and North Korean soldiers also hurt sentiment yesterday, traders said.
The TAIEX shed 114.36, or 2.1 percent, to close at 5,299.51. That's the biggest decline since April 28. About three stocks declined for every two that gained. July futures on the index fell 3.1 percent to 5,251. Turnover was NT$140.36 billion (US$4.08 billion).
Lucent, the biggest US maker of telephone gear, delayed a target to return to profitability into fiscal 2004, which begins in October, and said third-quarter revenue fell more than expected.
TSMC shed NT$1.50, or 2.5 percent, to NT$58. TSMC makes chips used in Lucent products.
United Microelectronics Corp (UMC,
China Motor Co (中華汽車) rose NT$1, or 1.6 percent, to NT$65. Yulon Motor (裕隆汽車) added NT$0.50, or 1.2 percent, to NT$42.50. New car sales may rise to 400,000 this year from a previous forecast of 380,000, a Chinese-language newspaper reported, citing carmakers.
Nanya Technology Corp (南亞科技) fell NT$0.30, or 1.1 percent, to NT$27.20. Winbond Electronics Corp (華邦電子) fell NT$1.10 to NT$20.50, while ProMOS Technolo-gies Inc (茂德科技) lost NT$0.30 to NT$16.20.