Stocks drop after Intel predicts sales will miss estimates

Stocks fell, led by semiconductor makers such as United Microelectronics Corp (UMC, 聯電) and Siliconware Precision Industries Co (矽統精密), after Intel Corp's first-quarter sales forecast fell short of some analysts' expectations.

Chi Mei Optoelectronics Corp (奇美電子) gained NT$0.60, or 1.5 percent, to NT$41, after a Chinese-language newspaper reported that the company expected its 2003 fourth-quarter profit to rise because demand for flat-panel TVs had exceeded the company's ability to supply. Chi Mei yesterday signed an agreement for a NT$41.2-billion loan earmarked to finance expansion.

The TAIEX dropped 10.60, or 0.2 percent, to 6,264.37. The Taiwan Futures Index shed 0.4 percent to 6,300.

Decliners outnumbered gainers 443 to 327 with 184 issues unchanged. Trading totaled NT$111.94 billion (US$3.32 billion), steady from NT$112.22 billion on Wednesday.

"Investors aren't eager to chase stocks higher, as they expect US stocks to fall tonight," said Alan Tseng, assistant vice president at Capital Securities Corp (群益證券).

The cautious sentiment on US stocks was attributed to Intel's conservative first-quarter revenue projections.

"There's no momentum either to bid stocks higher or to knock them down" with only one session left this week before the holiday, Tseng said.

UMC, the world's second-largest maker of computer chips on a subcontracting basis, slipped NT$0.30, or 1 percent, to NT$30.90.

Rival Taiwan Semiconductor Manufacturing Co (台積電) ended unchanged at NT$67.