TAIEX slides further, led by First Financial Holding

Stocks dropped for the seventh session in eight yesterday. First Financial Holding Co (第一金控) fell after the nation's sixth-biggest financial services company by market value said reports that it was considering a merger and planned to hire an investment bank were "speculative."

AU Optronics Corp (友達光電) rose after a Chinese-language newspaper said the maker of flat-panel displays expects sales and shipments to climb more than 50 percent next year. AU Optronics added NT$0.20, or 0.5 percent, to NT$39.80.

In addition, investors did not want to run too far ahead given that US markets will be closed today for the Thanksgiving holiday.

The TAIEX lost 0.57 point to 5,860.61. The benchmark has dropped 3.1 percent since Nov. 17. The Taiwan Futures Index added 0.3 percent to 5,904.

First Financial shed NT$0.40, or 1.8 percent, to NT$22.30. The company in late Tuesday denied it was considering a merger before next year.

"Those news reports are speculative," First Financial said in a statement to the Taiwan Stock Exchange Tuesday after the close of trading. "Nothing related to merger plans have been put on the agenda for the board of directors' meeting this month or in December."

However, Taishin Financial Holdings Co (台新金控), which media reports speculated could merge with First Financial, was up 0.4 percent at NT$26.

Financial bellwether Cathay Financial Holding Co (國泰金控) closed down 0.4 percent at NT$49.80.