Seasonal worries push down stocks; Powerchip surges

Taiwan's shares ended lower yesterday, led by technology heavyweights on second-quarter earnings concerns.

The benchmark index of the Taiwan Stock Exchange closed down 69.24 points, or 1.2 percent, at 5885.45. Decliners outnumbered advancers 683 to 186, while 152 stocks ended unchanged.

"Investors preferred to stay on the sidelines or unload some of their holdings on concerns seasonal factors will affect technology companies' earnings in the second quarter," said Hsiuli Lee, a manager at Franklin Templeton First Taiwan.

The technology subindex ended 1.5 percent lower.

Liquid-crystal-display stocks lost ground on concerns demand won't catch up with increased output in the next few months, analysts said.

Shares in AU Optronics Corp (友達光電) fell 2.0 percent to NT$50.40 and Chi Mei Optoelectronics Corp (奇美電子) ended 2.1 percent lower at NT$49.25.

Shares in the world's biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), dropped 2.3 percent to NT$55.20, while United Microelectronics Corp (聯電) closed down 1.7 percent at NT$20.15.

Memory chipmaker Powerchip Semiconductor Corp (力晶半導體) bucked the trend, surging 6.5 percent to NT$20.55 on its attractive valuation after it went ex-dividend yesterday, Lee said.

Financial stocks ended 1.1 percent lower on a lack of leads.

Cathay Financial Holding Co (國泰金控) closed down 1.2 percent at NT$56.80 and Mega Financial Holding Co (兆豐金控) fell 1.0 percent to NT$20.40.

Tourism-related stocks gained after China last week offered to end a ban on visiting Taiwan.