Wed, Oct 15, 2003 - Page 11 News List

TAIEX ends two-day gain

BLOOMBERG

The TAIEX fell for the first day in three yesterday. Nanya Technology Corp (南亞科技), the nation's largest maker of computer-memory chips, declined after it reported an unexpected loss in the third quarter compared with a profit a year ago.

Acer Inc gained after saying it will spend as much as NT$14.8 billion (US$439 million) to buy back its shares.

The TAIEX shed 34.05, or 0.6 percent, to 5,938.42, ending a two-day, 2.6 percent gain. About seven stocks declined for every four that gained. The futures contract for October delivery lost 0.8 percent to 5,979.

About 5.8 billion shares changed hands, 36 percent above the three-month, daily average. Shares worth NT$121.7 billion traded, 24 percent above the three-month daily average.

"Investors are closely monitoring profit reports and quickly adjusting their investments, switching from weak performers to companies with good growth," said Eddie Chiu, who manages the equivalent of US$116 million for First Global Investment Trust Co's (元大投信) Hitech Fund in Taipei.

Nanya Technology dropped NT$1.70, or 6.9 percent, to NT$22.90. Nanya said its net loss was NT$169 million in the three months ended Sept. 30, compared with net income of NT$586 million a year ago, partly because of higher costs to test its semiconductors.

Acer climbed NT$0.50, or 1 percent, to NT$48.50, adding to a two-day, 6.2 percent rally. The company will buy as many as 40 million shares for as much as NT$52 each starting today for two months, it said in a statement to the Taiwan stock exchange. Acer will offer a premium of more than 8 percent for the shares, based on their closing price on Monday.

AU Optronics Corp (友達光電), the world's No. 3 maker of flat-panel displays for personal computers, rose NT$0.20, or 0.4 percent, to NT$45.20. AU Optronics was raised to "overweight/positive" from "equal-weight/neutral" by David Toh, an analyst at Lehman Brothers.

Uni-President Enterprises Corp (統一企業), the nation's largest food processor, gained NT$0.15, or 1.2 percent, to NT$13.15.

Uni-President plans to spend as much as NT$6.1 billion to buy back a 2.9 percent stake in itself starting yesterday. It plans to buy back as many as 100 million shares for as much as NT$14 each, it said in a statement to the Taiwan Stock Exchange.

VIA Technologies Inc (威盛電子), the world's second-largest maker of chipsets for personal computers, shed NT$0.50, or 0.9 percent, to NT$54.

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