Stocks fall, led by China Airlines and Quanta Computer

Stocks dropped, led by travel-related companies such as China Airlines Co (華航), after China said a 32-year-old television producer may have SARS, which would mark China's first case since the global outbreak earlier this year.

Quanta Computer Inc (廣達電腦) and Yulon Motor Co (裕隆汽車), which count China as a key manufacturing base or market, also declined.

The TAIEX shed 52.32, or 0.9 percent, to 5804.89. About two stocks declined for every one that gained. The Taiwan futures index dropped 0.5 percent to fall to 5836.

China Airlines dropped NT$0.20, or 1.3 percent, to NT$14.70. EVA Airways Corp (長榮) fell NT$0.30, or 2.1 percent, to NT$14. Both carriers reported losses in the first half.

"Investors are reluctant to buy shares, fearing SARS will spread," said Phil Chen, a fund manager at Grand Cathay Securities Investment Trust Co (大華投信).

Quanta Computer, Taiwan's largest notebook computer maker, shed NT$1.50, or 1.8 percent, to fall to NT$81. Yulon Motor shed NT$0.40, or 1 percent, to fall to NT$41.40. China is the automobile maker's biggest overseas market.

Chunghwa Picture Tubes Ltd (中華映管), Taiwan's third-largest maker of flat-panel displays for personal computers, fell NT$0.25, or 1.7 percent, to NT$14.10.

Tatung Co (大同) said it plans to sell a 5 percent stake, worth NT$4.3 billion (US$126.2 million), in Chunghwa Picture Tubes. Tatung shed NT$0.05, or 0.6 percent, to fall to NT$8.55.

Cement companies' shares rose after the firms announced higher-than-expected product price increases for 2004.