Sat, Jul 26, 2003 - Page 11 News List

TSMC leads as TAIEX falls

BLOOMBERG

The TAIEX fell yesterday, snapping a three-day rally.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) dropped as some investors judged its 48 percent rally this year as of Thursday has outpaced earnings growth.

"Taiwan Semiconductor's shares already reflect an industry recovery," said Fam Hsieh, who manages the US$35 million Balance Fund at Grand Cathay Securities Trust Co (大華投信).

Hsieh's fund has risen 21 percent since last month, compared with the benchmark index's 19 percent gain.

Chang Hwa Commercial Bank (彰化銀行) rose for a second day.

The Dutch financial-services company ING Groep NV might buy a stake in the state-controlled bank, a Chinese-language news-paper reported.

The TAIEX shed 8, or 0.2 percent, to 5,394.75. The index gained 2 percent this week. About three stocks declined for every two that gained. July futures on the benchmark lost 0.6 percent to 5,384.

TSMC dropped NT$1.50, or 2.6 percent, to NT$57. The company said on Thursday that it expects demand for chips used in consumer electronics and mobile phones to increase this quarter, while computer-chip sales will drop.

Net income rose 26 percent to NT$11.7 billion (US$340 million) in the three months ended June 30, the company said yesterday.

Its smaller rival, United Microelectronics Corp (UMC, 聯電), lost NT$0.90, or 3.5 percent, to NT$24.80.

About 4.9 billion shares changed hands, 16 percent above the average daily trading in the past three months. The value of trading was NT$130.8 billion (US$3.8 billion), 46 percent above the three-month daily average.

Chang Hwa Commercial, the nation's sixth-largest bank by assets, rose NT$0.10, or 0.6 percent, to NT$16.40, adding to Thursday's 3.2 percent advance.

Chang Hwa plans to sell shares to overseas investors in the form of global depositary receipts, a Chinese-language newspaper reported, citing ING's managing director and head of Taiwan, Wu Ching-mai.

Chang Hwa hired ING, the Netherlands's largest financial-services company, last year to help it reorganize its business.

Chang Hwa plans to raise about NT$46 billion selling shares by the first half of next year to boost its capital, said executive vice president Hsieh Chao-nan.

HannStar Display Corp (瀚宇 彩晶), the nation's fourth-largest maker of flat-panel displays, fell NT$0.55, or 3.6 percent, to NT$14.65.

HannStar increased its overseas share sale by 15 percent, raising a total of US$201 million, according to one of the arrangers of the sale.

The company sold about 3.6 million global depositary receipts at US$7.36 each, raising about US$26 million, said Mervyn Chow, a vice president at Credit Suisse First Boston in Hong Kong.

On July 15, HannStar raised US$175 million selling GDRs to buy equipment for a new manufacturing plant.

Yuanta Core Pacific Securities Co (元大京華證券) fell NT$0.20, or 1 percent, to NT$19.20.

Parent company Yuanta Securities Group bought about US$200 million worth of First Financial Holding Co (第一金控) shares, according to a Chinese-language newspaper report. The purchase gives Yuanta an estimated 7 percent stake in First Financial, making it the largest private shareholder after the government, the newspaper said.

First Financial was unchanged at NT$20.60.

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