TAIEX closes flat on weak revenues at chip companies

Shares ended flat yesterday, as revenue reports from heavyweight semiconductor and flat-panel companies presented a mixed picture.

The TAIEX finished 0.84 points, or 0.01 percent, lower at 6,102.16 in trading valued at NT$94.75 billion (US$2.79 billion).

Advancers narrowly outnumbered decliners 335 to 303, while 174 issues ended the day unchanged.

Shares of Taiwan Semiconductor Manufacturing Co (台積電), the world's largest contract chipmaker, plunged 3.8 percent to NT$43.30 after the company said its revenue last month fell 1 percent on-month to NT$23.17 billion, confirming that the weakness in the tech sector has spread to the giant chip foundries.

The company's American Depositary Receipts fell 2 percent overnight.

Investors were also reacting to the company's statement that its fourth quarter revenue would decline slightly from the previous quarter if the slowdown continues.

United Microelectronics Corp (聯電), the world's No. 2 contract chipmaker, fell 2.4 percent to NT$20.70 on a 0.9 percent loss in its ADRs.

The company posted record revenue of NT$11.86 billion for last month, but many analysts expect the third quarter to be the peak for the firm.

AU Optronics Corp (友達光電), the nation's largest maker of liquid-crystal-display panels, was up 1.4 percent at NT$45.2. It reported a 15 percent on-month rise last month consolidated revenue to NT$12.93 billion due to strong demand, beating analysts' estimates of flat or marginal on-month revenue growth.