Thu, Jul 31, 2003 - Page 11 News List

Asustek, UMC lead decliners

BLOOMBERG

Stocks fell for a second day yesterday. Computer-related stocks such as Asustek Computer Inc (華碩電腦) and Compal Electronics Inc (仁寶電腦) slid after Standard & Poor's said Asia's technology industry has yet to see a clear turnaround.

The TAIEX shed 35.28, or 0.7 percent, to 5,307.18. About three stocks gained for every two that declined. About 3.7 billion shares changed hands, 15 percent below the daily average in the past three months. The value of trading was NT$86 billion (US$2.5 billion), 7 percent below the three-month daily average.

August futures on the benchmark fell 0.9 percent to 5,308.

"The most likely scenario is that the second half of 2003 will see only moderate growth, before demand overtakes supply, and chip prices rise and sales improve sometime in 2004," John Bailey, a Standard & Poor's director, said Tuesday in Taipei.

Bailey was in town for a seminar on outlook of Asia's technology industry.

Asustek Computer fell NT$3.50, or 3.1 percent, to NT$108.50. The stock has rallied 79 percent this year, compared with a 20 percent gain in the index.

Compal Electronics, the world's second-largest maker of notebook computers, fell NT$1, or 2 percent, to NT$49. Its shares have gained 57 percent this year.

"Investors will demand to see profit figures that can support the rally," said Simon Chao (趙永宏), who manages US$17 million at President Investment Trust Corp (統一投信).

"Companies that failed to provide good scorecards will be discarded," he said.

Cathay Financial Holding Co (國泰金控) rose NT$0.60, or 1.5 percent, to NT$40.40, after it sold shares to overseas investors at a premium.

Cathay yesterday raised US$450 million selling shares at NT$40 each to overseas investors, a 0.5 percent premium to Tuesday's closing price of NT$39.80.

Fubon Financial Holding Co (富邦金控) fell NT$0.20 , or 0.8 percent, to NT$25.80.

Fubon said it will try to cut jobs as it combines parts of its banking operations and reduces costs this year, following its December purchase of TaipeiBank.

Mosel Vitelic Inc (茂矽) was limit-up NT$0.10 at NT$1.59 on resuming trade yesterday, after it submitted overdue results for last year and first quarter of this year, and gave its earnings forecast for this year on July 18.

Its solid showing also inspired unit ProMOS Technologies Inc (茂德科技) to gain ground, adding NT$0.25 to NT$14.25.

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