Stocks fell for a second day yesterday, with the TAIEX having its biggest slide in more than two months.
MediaTek Inc (聯發科技), the world's largest supplier of semiconductors, led technology-related shares lower after its second-quarter profit disappointed some investors.
The TAIEX shed 117.74 points, or 2.2 percent, to 5,259.45 -- its biggest percentage drop since April 28.
About six stocks declined for every one that gained. August futures on the benchmark fell 1.4 percent to 5,293.
"MediaTek's profit report just wasn't good enough," 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 14.5 percent since June, the same as the TAIEX.
"The technology industry recovery has already been reflected in recent rallies," he said.
MediaTek fell NT$22, or 5.2 percent, to NT$405.
The stock has gained 42 percent this year, compared with the index's 18 percent gain. The company said yesterday after the market closed that its second-quarter profit rose 27 percent.
Taiwan Semiconductor Manufacturing Co (台積電), the world's largest maker of computer chips on a subcontracting basis, dropped NT$1.50, or 2.5 percent, to NT$58.50.
Rival United Microelectronics Corp (聯電) lost 2.9 percent to close at NT$23.50, while computer maker Acer Inc fell just 0.8 percent to NT$48.30, and Hon Hai Precision Industry Co (鴻海精密) fell NT$6, or 3.7 percent, to NT$157.
Taiwan Cellular Corp (
Taiwan Cellular may take over eight units as part of a reorganization, a Chinese-language newspaper reported, without saying where it got the information.
Taiwan Cellular acting chairman Daniel Tsai (蔡明忠) will probably take the place of chairmen at the units in charge of operations such as engineering and customer service, the report said.
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