The TAIEX fell for the third day in four yesterday. Computer-related shares such as Compal Electron-ics Inc (仁寶電腦) declined after Cisco Systems Inc said business customers were becoming "more cautious" about the economy.
Exporters such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) advanced after the US Federal Reserve said economic growth is set to pick up.
The TAIEX lost 26.39, or 0.5 percent, to 5,367.34. About three shares fell for every one that rose. The index futures for August shed 0.7 percent to 5,325.
"Cisco's caution added to uncertainties," said Charles Chen, who manages the equivalent of US$150 million for a global fund at JF Asset Management Co in Taipei. "There is no clear direction for the moment," he said.
Compal Electronics, the world's second-largest notebook computer maker, slipped 1.9 percent to NT$31.20. Asustek Computer Inc (華碩電腦), the world's largest motherboard maker, lost 1.4 percent to NT$69.
TSMC, the world's largest supplier of made-to-order chips, added 1.2 percent to NT$43.80. United Microelectronics Corp (聯電), the world's second largest, gained 0.5 percent to NT$22.
Spot prices of the most widely used computer-memory chip may fall as low as US$4.15 in the coming week because of weaker than expected demand from computer makers, Dramexchange.com, a Taiwan-based marketplace for chipmakers, said in a weekly forecast. Powerchip Semiconductor Corp (
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