Stocks down for the seventh session in a row on oil fears

Stocks fell for a seventh session in a row to end at a six-week low yesterday as concerns mounted over the effect of high oil prices on corporate earnings in the coming year.

The TAIEX fell 48.70 points, or 0.8 percent, to end at 5,772.12, its weakest closing level since Sept. 3's 5,761.14.

Turnover totaled NT$48 billion (US$1.4 billion), with 540 stocks finishing the session down, 137 up and 119 unchanged.

"We can sort of tell how the economy and industries will fare in the fourth quarter, and now people are starting to worry about the first quarter of next year," said Bill Huang, a trader at KGI Securities Co (中信證券). "This surely has to do with oil prices."

The steel subindex was down 1.2 percent, while financials were off 0.8 percent, and electronics lost 0.3 percent.

Thin-film-transistor screen makers were leading the decline in technology issues.

AU Optronics Corp (友達光電), the world's third largest TFT-LCD screen maker, was down 2 percent at NT$39.80 early, while rival Chi Mei Optoelectronics Corp (奇美電子) was off 1.5 percent at NT$39.2.

Market watchers say panel prices will resume their decline after a near-term bounce caused by seasonally strong personal computer sales.

Makers of dynamic random access memory chip firms were also falling early. DRAM prices continue to trickle lower but remain at highly profitable levels.

Powerchip Semiconductor Corp (力晶半導體), the nation's largest DRAM maker, was down 1.2 percent early at NT$25.6, while Nanya Technology Corp (南亞科技) was off 0.8 percent at NT$26.3.