Fri, Aug 17, 2007 - Page 12 News List

Credit concerns pummel index anew

MARKET JITTERS Financial stocks bore the brunt of the sell-off amid concerns over domestic banks' exposure to problem loans in the US and fears of a credit squeeze


"The exchange rate of the NT dollar is still relatively stable [compared to other currencies] ... and the central bank will support [market] liquidity," Perng said.

Based on the central bank's latest data, the NT dollar was down 0.36 percent against the US dollar yesterday, compared with a 0.76 percent drop in the Japanese yen and a 3.58 percent decline in the New Zealand dollar.

Perng declined to say whether the central bank had intervened in the forex market yesterday, stressing only that the economy was in a good shape.

Chung, however, advised caution. He suggested investors take more conservative moves by buying blue-chips in traditional industries, such as the nation's biggest polyvinyl chloride supplier Formosa Plastics Corp (台塑) or China Steel Corp (中鋼).

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