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Hon Hai leads decliners as TAIEX keeps falling

The TAIEX fell for the fifth day yesterday, led by Taiwan Semi-conductor Manufacturing Co (TSMC, 台積電) and Hon Hai Preci-sion Industry Co (鴻海精密), on concern advances this year may have outpaced their profit growth.

"Technology stocks are leading gainers this year so they're under greater scrutiny by investors reevaluating their worth," said Celine Chiang (江宜津), a fund manager at Polaris International Securities Investment Trust Co (寶來投信).

"Another wave of terrorist attacks [in Istanbul] damaged investor confidence," she said.

The TAIEX shed 4.18, or 0.1 percent, to 5,830.06. The index lost 3.6 percent this week, paring its gain this year to 31 percent. The Taiwan Futures Index dropped 0.6 percent to 5,862.

TSMC fell NT$0.50, or 0.8 percent, to NT$65. It has rallied 65 percent this year.

Hon Hai Precision, fell NT$2, or 1.4 percent, to NT$138. Hon Hai has rallied 38 percent this year.

Chunghwa Telecom Co (中華電信) shed NT$0.40, or 0.8 percent, to NT$49.60.

The government said it will next week offer 180 million shares of Chunghwa Telecom to local investors as part of its plan to gradually sell control of the company. Next week's auction is expected to raise NT$9 billion, based on the company's closing price on Thursday of NT$50. The offer, if completed, will lower the government's stake in Chunghwa Telecom by 1.87 percentage points to 63.11 percent.

China Development Financial Holding Corp (中華開發金控), the fifth-biggest financial services company by market value in the country, rose NT$0.15, or 1.1 percent, to NT$14.50.
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