TSMC leads losers as demand worries send TAIEX down

Stocks dropped for a second day yesterday. Taiwan Semiconduc-tor Manufacturing Co (TSMC, 台積電) led the decline on concern demand that will slow.

The TAIEX shed 33.91, or 0.6 percent, to close at 5,349.66. The benchmark slid in the last half-hour of trading as TSMC's second-quarter results were made public and closed at the day's low. TAIEX futures contracts for delivery next month dropped 1.2 percent to 5,297.

TSMC slumped 1.7 percent to NT$41. The company's second-quarter net profit doubled to NT$23.4 billion (US$689.6 million) as demand surged. Rival United Microelectronics Corp (聯電) shed 0.5 percent to NT$21.30.

Chunghwa Telecom Co (中華電信), the nation's largest phone company, fell 0.9 percent to NT$53.50. Taiwan Cellular Corp (台灣大哥大) said it raised about NT$333 million selling shares in the company.

Taiwan Cellular has sold 6.2 million shares at an average of NT$53.41 each since July 21, the company said in a statement to the Taiwan Stock Exchange. Taiwan Cellular fell 4.1 percent to NT$30.10.

Fubon Financial Holding Co. (富邦金控), the fifth-largest financial services provider, fell 1.8 percent to NT$26.80 after the company it said it would help sell Citigroup Inc's stake in the company. Citigroup is selling all its 806 million shares, valued at US$649 million, Fubon said.

"Citigroup's plans to sell Fubon shares overseas will put pressure on the stock price in the short term, but the overseas exposure should help Fubon in the long run," said Murphy Huang (黃耀德), a fund manager at PCA Securities Investment Trust Co (保誠投信).