Oil prices and US consumer report weigh on stocks

Stocks fell for the first day in three yesterday. Exporters such as Taiwan Semiconductor Manufacturing Co (台積電) led declines after crude-oil futures surged and a report showed an unexpected drop in US consumer confidence.

The TAIEX shed 37.92, or 0.7 percent, to 5,352.01. About NT$27.3 billion of shares traded, the lowest since May 19 last year. Almost two shares fell for each that rose. Index futures for August fell 0.5 percent to 5,331.

"High oil prices and weakening US consumer confidence could slow our export growth," said James Liu, who oversees the equivalent of US$240 million at ING CHB Securities Investment Trust Co in Taipei.

Taiwan Semiconductor, the world's largest supplier of made-to-order chips, lost NT$0.40, or 0.9 percent, to NT$43.40.

Quanta Computer Inc (廣達電腦), the world's largest notebook computer maker, shed NT$2.50, or 4.4 percent, to NT$54.50. Hon Hai Precision Industry Co (鴻海精密), the nation's biggest electronics company by sales, fell NT$2.50, or 2.1 percent, to NT$117.

US consumer confidence fell for the first time in three months, dropping to 94 in August from 96.7 in July, the University of Michigan's index of consumer sentiment showed. The US is Taiwan's second-largest export market after China.

First Financial Holding Co (第一金控), Taiwan's fifth-largest financial-services provider, added NT$0.1, or 0.5 percent, to NT$22. First Financial won't merge with another financial company in the next two years, according to a Chinese language newspaper, which cited Minister of Finance Lin Chuan (林全).