Stocks fell yesterday, with the TAIEX having its biggest decline in two weeks. Mega Financial Holding Co (兆豐金控) dropped after the government tightened regulations on banks and insurance companies that plan to buy back their own shares.
"It will make fewer companies buy back their own shares in the near term," said Tu Jin-lung (杜金龍), who oversees the equivalent of US$6 million for private clients at Grand Cathay Investment Services Co (大華投信), a unit of Grand Cathay Securities Corp (大華證券) in Taipei.
The TAIEX shed 72.66, or 1.2 percent, to 5,818.39. Six shares fell for each one that rose. The bench-mark declined 0.5 percent this week after rising 1.5 percent last week. Index futures for Septem-ber declined 1.2 percent to 5,797.
Mega Financial fell 2.9 percent to NT$20.40. Fubon Financial Holding Co (富邦金控) shed 2.3 percent to NT$30.30. Chang Hwa Commercial Bank (彰化銀行) lost 2.1 percent to end at NT$18.50.
Advanced Semiconductor Engineering Inc (日月光), the world's biggest chip packager, shed 0.4 percent to NT$23.30. Advanced Semiconductor and other local rivals may face a new setback in plans to make their first investments in China.
"There is no definite sched-ule," said Minister of Economic Affairs Ho Mei-yueh (何美玥) in an interview on Thursday. "The plan is still under negotiation."
Taiwan Semiconductor Manufacturing Co (台積電), the world's largest supplier of made-to-order chips, slipped 1.3 percent to NT$44.80. The company said it has cut expectations for global chip demand next year because of slowing world economic growth.
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