Print

Mail

wiki links

UMC declines on pessimism over sales report

The TAIEX fell for a fifth day in six yesterday. United Microelectronics Corp (UMC, 聯電), the world's second-largest supplier of made-to-order semiconductors, led declines after saying last month's sales dropped from the previous month.

Petrochemical makers such as Formosa Plastics Corp (台塑) and Nan Ya Plastics Corp (南亞塑膠) gained. Japan's Mitsui Chemicals Inc said it will halt production of ammonium and other chemicals at a plant in Osaka after falsifying inspection records.

The TAIEX shed 17.95, or 0.3 percent, to 5,214.60. The benchmark has lost 3.3 percent since Aug. 4. Index futures expiring in August rose 0.9 percent to 5,251. About five stocks declined for every that two that gained.

About 2.7 billion shares changed hands, 39 percent below the average trading in the past three months. The value of trading was NT$66 billion, 32 percent below the three-month daily average.

UMC lost NT$0.30, or 1.3 percent, to NT$22.20. Last month's sales were NT$7.01 billion (US$203.4 million), a 0.2 percent drop from June. Taiwan Semiconductor Manufacturing Co (台積電) dropped NT$1, or 1.7 percent, to NT$57.

"UMC's latest sales report showed a feeble recovery in the semiconductor industry," said Simon Chao (趙永宏), who manages US$17 million at President Investment Trust Corp (統一投信) in Taipei.

Formosa Plastics, the nation's biggest maker of polyvinyl chloride, added NT$0.40, or 0.9 percent, to NT$47. Nan Ya Plastics, the country's biggest maker of plastics chemicals, climbed NT$0.30, or 0.8 percent, to NT$39.10.

Tokyo-based Mitsui Chemicals said in a release that production will be suspended until checks are completed at the plant. It said inspections were not completed from 2000 to last year and falsified reports were provided to regulators.

"Investors are betting Taiwanese petrochemical makers can benefit from Japanese rivals' problems," Chao said.

Asustek Computer Inc (華碩電腦), the country's largest maker of the boards that hold the chips that run computers, gained NT$0.50, or 0.5 percent, to NT$94. Asustek said it shipped a record 2.5 million so-called motherboards last month, giving it a quarter of the world market, after winning Intel Corp as a customer.

Orders from Intel will increase through the rest of this year, said David Chang (張偉明), Asustek's deputy financial director.

Asustek's sales last month more than doubled to about NT$17.5 billion.

Chunghwa Telecom Co (中華電信) was unchanged at NT$47.40 after earlier falling as much as 1.5 percent. Chunghwa said after the close of trading on Friday that last month's sales declined to NT$14.9 billion from NT$15.1 billion in June.

Hon Hai Precision Industry Co (鴻海精密) added NT$0.50, or 0.4 percent, to NT$122.50. Hon Hai said on Saturday that sales last month rose 31 percent to NT$28 billion, compared with sales of NT$21.4 billion in July a year ago and NT$22.3 billion in June this year.
This story has been viewed 2725 times.