Sat, Nov 01, 2003 - Page 11 News List

Stocks decline, led by Taiwan Semiconductor

BLOOMBERG AND AP , TAIPEI

The TAIEX fell for the first day this week yesterday. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Hon Hai Precision Industry Co (鴻海精密) declined on concern their growth may not be sustainable.

"Technology companies showed good growth in the third quarter but that also created a harder benchmark to beat," said Celine Chiang (江宜津), a fund manager at Polaris International Securities Investment Trust Co (寶來投信).

"Investors will have to reevaluate tech shares," she said.

The TAIEX shed 63.01, or 1 percent, to 6,045.12. The benchmark gained 2.2 percent this week and jumped 7.7 percent this month. About three stocks declined for every two that advanced. The futures index lost 1.1 percent to 6,068.

Technology issues led the session's decline, with the sector's subindex down 2.2 percent. TSMC slid NT$2.50, or 3.6 percent, to NT$67. It has jumped 70 percent this year.

Hon Hai Precision shed NT$4, or 2.6 percent, to NT$152, paring gains this year to 52 percent.

The financial sector, which tends to take up the slack when technology shares pull back, spent most of the day in the red before turning around in the last half hour to end the session up 0.1 percent.

Mega Financial Holding Co (兆豐金控) ended 0.48 percent higher at NT$21.00, while Cathay Financial Holdings Co (國泰金控) closed up 0.9 percent at NT$56.00.

The only major gainers yesterday were old-economy issues, led by the auto sector, said Andrew Teng, deputy manager at Taiwan International Securities Corp (金鼎證券).

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