Thu, Aug 16, 2007 - Page 11 News List

Taiwanese shares slump following big falls overseas


Shares closed 3.57 percent lower yesterday after big falls overseas amid continuing worries over US subprime mortgage problems and a deteriorating global credit environment, dealers said.

The TAIEX closed down 317.95 points at 8,593.04, its lowest level since June 15, after moving in a range between 8,808.59 and 8,561.02. Turnover was NT$163.46 billion (US$4.95 billion).

Technology heavyweights Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電) suffered relatively small declines on a report in the Chinese-language Commercial Times that they will reach 100 percent capacity utilization on new chip orders.

TSMC was down 1.4 percent to NT$61.20, while UMC fell 2.1 percent to NT$17.90, following falls in the prices of their American Depositary Receipts overnight.

Jack Tam, an assistant vice president at Yuanta Core Pacific Capital Management (元大京華投顧), said the latest round of global market jitters added pressure on the local bourse that was already in a correction mode.

"Investors kept a wary eye ... following slumps in international markets amid fears of tightening credit worldwide," he said.

Uneasiness over global markets initially dragged the index below its quarterly moving average of approximately 8,884 points, before stop-loss selling sent the bourse into a further tailspin in late trade, he said.

Diana Wu of Capital Securities Corp (群益證券) said continuing uncertainty over mortgage-related debt exposure ruled out the possibility of an early recovery.

"Subprime woes are unlikely to be solved anytime soon," she said.

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