As exporter shares decline, Hon Hai Precision advances

Exporter stocks fell, paced by companies such as United Microelectronics Corp (UMC, 聯電) after a US government report showed that Taiwan's second-largest export market added fewer jobs than expected last month.

UMC, the world's No. 2 supplier of made-to-order chips, fell NT$0.10, or 0.3 percent, to NT$31.50. Rival Taiwan Semiconductor Manufacturing Co (台積電) closed unchanged at NT$67.50.

Hon Hai Precision Industry Co (鴻海精密) gained after a Chinese-language newspaper said the company plans to raise its stake in CP Technology Co (撼訊科技) to 20 percent.

The company's increased stake in CP Technology, one of Taiwan's largest makers of graphics cards for personal computers, would be Hon Hai's latest move to develop its made-to-order electronics manufacturing business, the paper said. The company previously agreed to buy Ambit Microsystems Corp (國電).

"Hon Hai is in a hurry to grow, so maybe it thinks that raising its stake now will help it with the recovery," said James Tu, a fund manager at President Investment Trust Corp (統投信).

Hon Hai rose NT$4.50, or 3.1 percent, to NT$151. CP Technology jumped NT$2.90, or 6.8 percent, to NT$45.60.

The TAIEX dropped 7.27 points, or 0.1 percent, to 6219.71. About three stocks dropped for every two that gained. The index swung between a 0.5 percent decline and a 0.3 percent gain.

TAIEX futures for January delivery rose 0.1 percent to 6275.

Volume was NT$90.9 billion (US$2.7 billion), 5.5 percent higher than the daily average for the past three months.