TAIEX flat as little reason seen for aggressive action

Shares were little changed yesterday as computer makers rose, offsetting declines in chipmakers.

The TAIEX rose 5.75 points, or 0.1 percent, to 6,416.34, on turnover of NT$93.46 billion (US$2.93 billion). Declines led gains 427 to 409, with 157 stocks unchanged.

The market was closed Monday as Typhoon Haitang made landfall on Taiwan, killing two people and leaving another two feared dead while causing extensive disruption to daily life across the nation.

"People took no aggressive action today as they was little reason to do so," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president.

Wall Street's overnight weakness was more or less offset by IBM's after-hours rally on its stronger-than-expected results, he said.

Hon Hai Precision Industry Co (鴻海精密) gained 0.8 percent to NT$183.00 and Quanta Computer Inc (廣達電腦), the world's largest notebook PC maker by sales, rose 1.3 percent to NT$63.70.

The world's two largest contract chipmakers both lost ground.

Shares in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) fell after Morgan Stanley cut its recommendation for the stock to "equal weight" from "overweight" saying the share price has reached a peak.

TSMC's shares have gained nearly 20 percent since Jan. 1 as the company has been saying demand for its chips is improving.

TSMC fell 0.7 percent to NT$56.20.

The company's smaller rival, United Microelectronics Corp (聯電), declined 1.4 percent to NT$24.20.