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TAIEX declines on worries strong NT may dent eports

Stocks fell for the first day in five yesterday, led by exporters such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Hon Hai Precision Industry Co (鴻海精密), after the sharpest rise in the nation's currency against the US dollar in more than two years.

The TAEIX fell 82.16, or 1.4 percent, to 5,675.75. Eight stocks declined for every three that gained. The futures contract for September delivery fell 0.9 percent to 5,696.

About 3.7 billion shares changed hands, or 19 percent below the average daily volume in the past three months. Shares worth NT$81.6 billion (US$2.4 billion) were traded.

"A sharp appreciation of the New Taiwan dollar would devastate the nation's exporters," said Celine Chiang, a fund manager at Polaris International Securities Investment Trust Co (寶來投信).

TSMC, a maker of computer chips that gets three-quarters of its sales in the US, fell NT$1.50, or 2.2 percent, to NT$67.50.

Hon Hai, the nation's largest electronic manufacturer, fell NT$5, or 3.2 percent, to NT$152.

Delta Electronics Inc (台達電子), the world's biggest maker of computer power-supply systems, fell NT$1.7, or 3.7 percent, to NT$44. Its Delta Electronics (Thailand) Pcl unit may build a 4.8 billion baht ($118 million) plant to boost production in Thailand, an investment that may fetch tax breaks.

Formosa Plastics Corp (台塑) fell 60 cents, or 1.2 percent, to NT$48.40. Chairman Wang Yung-ching (王永慶), is considering building a steel mill in China's Fujian Province, a Chinese-language newspaper reported, citing Wang.
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