AU Optronics and Nanya Tech lead TAIEX decliners

Stocks fell for the first day in three yesterday, led by liquid-crystal display (LCD) makers such as AU Optronics Corp (友達光電) and Chi Mei Optoelectronics Corp (奇美電子), on concern price competition may lower their profit margins.

"Most consumers are waiting for prices to fall, meaning margin must shrink to boost sales," said Mike Shiao (蕭光一), a fund manager at Invesco Taiwan Ltd (景順投信).

"Demand for LCD TVs is good, but perhaps not enough to justify their share prices," he said.

The TAIEX shed 78.16, or 1.2 percent, to 6,732.09. Nine stocks fell for every two that gained. Taiwan Index futures due in April fell 1.7 percent, to 6,718.

AU Optronics, the nation's largest maker of LCDs, fell 3.3 percent to NT$72.50. The stock has gained 83 percent so far this year.

Rival Chi Mei Optoelectronics fell 5.9 percent to NT$72. It has more than doubled its share prices this year.

Makers of computer memory chips dropped after Dramexchange.com said in a weekly forecast that spot prices of computer-memory chip may fall this week on concern about inventory buildup ahead of slowing demand next month.

Nanya Technology Corp (南亞科技), the country's largest maker of computer-memory chips, shed 4.4 percent to NT$28.10.