Thu, Jul 29, 2004 - Page 11 News List

Sunplus and UMC lead as market falls on profit-taking

BLOOMBERG AND AP , TAIPEI

The TAIEX fell for a fourth day in five yesterday, as investors locked in profit after the market's 1.3 percent rise in the previous session, said traders.

The TAIEX shed 15.04, or 0.3 percent, to 5,383.57. TAIEX futures for August delivery added 0.1 percent to 5,360. About six stocks advanced for every five that declined.

Investors generally lack confidence in the economic and earnings outlook for the second half of the year, and they are more inclined to take profit after any gains, said Stanley Chou, a manager at Barits Securities Corp (倍利證券).

Worries that many of the technology companies will be unable to sell off their products weighed on electronics shares, which lost 0.2 percent as a whole.

Sunplus Technology Co (凌陽科技) tumbled 6.9 percent to NT$48.40, after Credit Suisse First Boston downgraded the chip designer, citing its third-quarter profit outlook and rising inventories. The company's inventory cycle in the second quarter increased by 5.2 days to 87 days, said Michael Lin, a Credit Suisse analyst, said in a report.

United Microelectronics Corp (UMC, 聯電), the world's second-largest supplier of made-to-order semiconductors, rose 0.5 percent to NT$21.40. UMC said after the market closed that net income rose to NT$12.7 billion from NT$2.7 billion a year earlier.

Taiwan Cellular Corp (台灣大哥大), the nation's second-largest provider of mobile-phone services, advanced 1 percent to NT$31.40. It said second-quarter profit rose 20 percent to NT$3.6 billion from NT$3 billion a year ago.

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