Fri, Jul 16, 2004 - Page 11 News List

TAIEX drops as Wall Street falls


Share prices closed 1.44 percent lower yesterday, extending losses as Wall Street's overnight declines and a rise in oil prices further dampened already weak investor sentiment, dealers said.

While bellwether electronics fell in line with their NASDAQ counterparts, old-economy industrials and financials also extended losses, leaving the market adrift and down for a fourth consecutive day.

For the moment there looks to be no sign of any respite, with the key tech sector suffering from a sharp reversal in sentiment on the outlook after weak guidance from several of the majors, including crucially US chip giant Intel Corp.

The TAIEX finished 80.85 points, or 1.44 percent, lower at 5,542.80 in dealings valued at NT$61.05 billion (US$1.80 billion).

Decliners well outnumbered advancers 642 to 119, while 168 issues ended the day unchanged.

Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's largest contract chipmaker, ended down 2.7 percent at NT$43 while shares of local rival United Microelectronics Corp (UMC, 聯電) finished 2.7 percent lower at NT$21.4.

TSMC's ADRs fell 6.2 percent in US trade, while UMC's lost 2.4 percent.

The electronics sector shed 1.8 percent Thursday, while transportation shares fell 4.6 percent and financials lost 0.9 percent.

Makers of liquid crystal display panels dropped on fears inventories of their products have stacked up, which will lead to further pricing declines, according to Deutsche Bank.

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