Feared lower US demand hurts flat-panel displays

TAIEX fell for the first day in four. Flat-panel display makers such as AU Optronics Corp (友達光電) and Chunghwa Picture Tubes Ltd (中華映管) declined after a local newspaper reported US demand during the holiday season could be less than expected.

The paper reported US demand for flat-panel display and LCD TVs could be less than expected as consumers purchase cheaper and bulky big-screen TVs.

"Demand for flat-panel TVs is still limited by their high price, so investors may have to be careful about disappointing sales," said Celine Chiang (江宜津), a fund manager at Polaris International Securities Investment Trust Co (寶來投信).

Many investors are on holiday over Christmas, while others have taken to the sidelines over concerns about terrorist attacks in the US during the festive season.

The TAIEX shed 4.17, or 0.1 percent, to 5853.70. About five stocks declined for every four that gained. The Taiwan futures index shed 0.1 percent, to 5860.

AU Optronics, the world's No. 3 maker of flat-panel displays for personal computers, fell NT$1.20, or 3 percent, to NT$38.90.

Rivals Chunghwa Picture Tubes shed NT$0.40, or 2.8 percent, to NT$14.15, and Chi Mei Optoelectronics Corp (奇美電子) fell 1.9 percent to NT$35.30.

Hon Hai Precision Industry Co (鴻海精密) gained after chairman Terry Gou (郭台銘) said he expects demand next year to improve on this year. Gou said institutional investors expect Hon Hai Precision sales to increase by NT$100 billion a year, though that may not be possible every year, the report said.

Hon Hai Precision rose NT$3, or 2.3 percent, to NT$136.50.