Fri, Nov 26, 2004 - Page 11 News List

Stocks down on stronger Taiwan dollar, tech gloom

AP , Taipei

Stocks fell yesterday as investors turned negative on companies sensitive to the strengthening Taiwan dollar and on a gloomy technology sector outlook, analysts said.

The Weighted Price Index of the Taiwan Stock Exchange finished 56.07 points lower, or 1 percent, at 5,855.24 in dealings valued at NT$57.5 billion (US$1.78 billion).

Decliners outnumbered advancers 512 to 127, while 128 issues ended the day unchanged.

The sell-off effectively erased gains from Wednesday's rally.

Fund managers say investors are worried a stronger Taiwan dollar could hurt technology companies' profits, because their goods are sold mainly at prices quoted in US dollars.

The electronics subindex fell 1 percent yesterday, as investors sold off shares of dynamic random memory chipmakers. Morgan Stanley warned in a report that the DRAM sector has peaked.

Nanya Technology (南亞科技), the nation's second largest DRAM maker, ended 2.6 percent down at NT$22.5. The company's main rival, over-the-counter listed Powerchip Semiconductor (力晶半導體), closed off 3.9 percent lower at NT$22.10.

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), shed 1.2 percent to NT$48.30, while smaller rival United Microelectronics Corp (聯電) dropped 1.5 percent to NT$20.40.

The rising Taiwan dollar weighed on some of the country's biggest gadget exporters. Quanta Computer (廣達電腦), the world's largest notebook computer maker, fell 1.9 percent to NT$53.

This story has been viewed 2899 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top