Stocks fall as investors turn cautious on price

The TAIEX fell for the second day yesterday. Computer-related companies such as AU Optronics Corp (友達光電) declined amid concern that their share-price gains more than reflect the outlook for profit.

The TAIEX shed 12.85, or 0.2 percent, to 5,939.47. The Taiwan Futures Index added 0.1 percent to 5,985. About eight stocks declined for every three that gained.

AU Optronics, the world's No. 3 maker of flat-panel displays for personal computers, fell NT$1.30, or 3 percent, to NT$41.50.

"Many computer-related shares had enjoyed a fantastic rally this year, so it is logical for investors to dump them near the year-end fearing profit growth will not be sustainable," said Mike Shiao, a fund manager at Invesco Taiwan Ltd (景順投信).

Hua Nan Financial Holdings Co (華南金控), the country's seventh-biggest financial services company by market value, gained NT$0.30, or 1.2 percent, to NT$24.50 after a Chinese-language newspaper reported Fortis, a Belgian financial services company, plans to set up a life insurance joint venture with the Taiwanese lender.

Macronix International Co (旺宏), the nation's largest maker of memory chips for electronic games, fell NT$0.30, or 3.3 percent, to NT$8.70. Macronix said it may raise as much as NT$4.73 billion by selling new shares to overseas investors to pare debt and buy production equipment.

Yageo Corp (國巨), the country's biggest maker of parts that control electricity in cell phones and personal computers, fell NT$1.20, or 7 percent, to NT$16.