Fri, Aug 15, 2003 - Page 11 News List

Supply concerns hurt Quanta

BLOOMBERG

Stocks dropped for the first day in three yesterday.

Quanta Computer Inc (廣達 電腦), the world's largest notebook-computer maker, led declining shares on concern it will face shortages of flat-panel displays.

Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) led advancing shares after a US retail sales report fueled optimism consumer demand would pick up in the nation's second-biggest export market.

"US consumer demand has started to accelerate entering into the back-to-school season," said Edward Tseng, who manages Ta Chong Investment Trust Co's (大眾投信) US$22 million Tech Fund.

"That should translate into better demand for Taiwan's exports," he said.

The TAIEX shed 5.52, or 0.1 percent, to 5,436.75, reversing an earlier gain of as much as 0.9 percent. About five stocks declined for every two that rose.

Index futures expiring in August slumped 0.4 percent to 5,447.

Turnover was NT$148.02 billion (US$4.3 billion).

Quanta Computer fell NT$1, or 1.2 percent, to NT$85.50.

Screen suppliers are shifting production to larger panels used in televisions, which are more profitable, Texas-based market researcher DisplaySearch said on Wednesday.

TSMC, the world's largest maker of computer chips on a subcontracting basis that gets three-quarters of its sales from the US, rose NT$0.50, or 0.9 percent, to NT$59.50.

China Airlines Co (華航) gained NT$0.25, or 1.8 percent, to end at NT$14.20. The airlines is upgrading its fleet as the carrier tries to improve its image after its fifth fatal crash in 11 years.

Chunghwa Telecom Co (中華電信) rose after Morgan Stanley Capital International Inc said the Taiwanese stock will be added to its standard indexes of global stocks from Aug. 29. The phone company was down NT$0.30 at NT$48, with late profit-taking wiping out early gains.

Pacific Electric Wire & Cable Co (太平洋電線電纜), the nation's biggest copper-wire maker, was the only company worldwide removed from the indexes, MSCI said.

It slumped NT$0.05, or 5.4 percent, to NT$0.88.

MSCI reviews its indexes quarterly, and adds or subtracts mem-bers to ensure the benchmarks comprise 85 percent of each country's market value that's available to investors.

First Financial Holding Co (第一金控), the owner of the nation's fourth-biggest bank by assets, gained NT$0.20, or 1.1 percent, to NT$19.30, reversing early losses, after apparent government support mitigated concerns stemming from the resignations of company chairman Jerome Chen (陳建隆) and president Ray Dawn (董瑞彬), dealers said.

This story has been viewed 2790 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top