Sat, Jul 19, 2003 - Page 11 News List

Hon Hai drops on concern software sector softening


Stocks dropped for a second day yesterday. Hon Hai Precision In-dustry Co (鴻海精密) fell after SAP AG, the world's largest business-management software company, signed up fewer customers than analysts expected, signaling optimism about industry growth may be overstated.

Chunghwa Telecom Co (中華電信) rose after Far EasTone Tele-communications Co (遠傳電信) agreed to buy KG Telecommunications Co (和信電訊).

"There isn't much competition in the fixed-line phone market for Chunghwa Telecom and now there will be less in the mobile market, as well," said Chris Ruffle, who manages the US$260 million China Fund, which has gained 84 percent this year.

The TAIEX fell 12.13, or 0.2 percent, to 5,287.38, paring its gain for the week to 0.9 percent. About two stocks dropped for every one that gained. Turnover was NT$101.34 billion (US$2.95 billion). July futures on the index added 0.1 percent to 5,255.

SAP's statement came after International Business Machines Corp said companies are delaying software purchases and Nokia Oyj forecast a slide in network-equipment sales this year.

Hon Hai, a computer cable connector maker, fell NT$1, or 0.7 percent, to NT$149. BenQ Corp (明基電通), the nation's largest cellphone maker, fell NT$0.80, or 1.9 percent, to NT$40.60.

Chunghwa Telecom gained NT$1.50, or 3 percent, to NT$51.50.

Far EasTone fell NT$0.20, or 0.9 percent, to NT$22.60. KG Telecom isn't listed.

Fubon Financial Holding Co (富邦金控) fell NT$0.20, or 0.7 percent, to NT$27.20. Fubon said its had a "poor" performance from its brokerage business.

Mega Financial Holdings Co (兆豐金控) was unchanged at NT$16.70. Mega Financial plans to sell as much as US$900 million of bonds convertible into its shares, according to a statement to the Taiwan Stock Exchange.

Losers and winner

* Hon Hai slipped 0.7 percent.

* BenQ Corp fell 1.9 percent.

* Far EasTone lost 0.9 percent.

* Teco Electric & Machinery Co dropped 1.4 percent.

* Fubon Financial Holding Co slipped 0.7 percent.

* Chunghwa Telecom gained 3 percent.

Teco Electric & Machinery Co (東元電機), an appliance and industrial motor manufacturer, dropped NT$0.15, or 1.4 percent, to NT$10.85 after it sold US$65 million of bonds exchangeable for shares it owns in United Microelectronics Corp (UMC, 聯電), the sale's arranger said.

Taiwan Semiconductor Manu-facturing Co (台積電) closed steady at NT$58 and UMC was down NT$0.30 at NT$24.40.

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