TAIEX continues to fall amid fears

Stocks declined yesterday, lead by Yulon Motor Co (裕隆汽車) and Uni-President Enterprises Corp (統一企業) amid concern their gains this

year weren't justified by the outlook for profits.

The TAIEX shed 17.44, or 0.3 percent, to 6,436.95. The index has fallen 0.8 percent since reaching its highest since September 2000 on Tuesday.

Taiex Futures for February delivery shed 0.3 percent to 6,440.

A record 9.9 billion shares changed hands, more than double the average daily trading in the past three months.

Shares worth NT$202.9 billion (US$6 billion) traded.

Uni-President, which sells instant noodle and beverages in China, shed 4.4 percent to NT$17.60.

The stock has gained 26 percent this year, compared with 9.3 percent gain in the TAIEX.

Yulon Motor which has a venture with Nissan Motor Co selling cars in Taiwan and China, fell 2.8 percent to NT$45.40. The stock has gained 12 percent this year.

Fubon Financial offered to buy International Bank of Asia (港基銀行) for HK$4.3 billion (US$553 million).

The acquisition will make Fubon the first Taiwanese lender to operate a branch network in Hong Kong.

Fubon Financial rose 0.6 percent to NT$32.50.

Cathay Financial Holding (國泰金控), the nation's largest financial company by market value, gained 0.9 percent to NT$57.50.

Cathay Financial plans to invest NT$30 billion in Taiwanese stocks and as much as NT$40 billion in bonds, a Chinese-language newspaper reported.

Compal Electronics Inc (仁寶) rose 0.7 percent to NT$43.40 after saying it plans to reduce capital expenditure this year by about three-fifths to NT$5 billion.