The TAIEX fell for a second day yesterday. United Microelectron-ics Corp (UMC, 聯電) led the drop as investors said a three-week, 23.4 percent rally, in its shares was excessive given the outlook for earnings.
The TAIEX dropped 47.55, or 0.8 percent, to 5,625.63. About five stocks declined for every two that gained.
The benchmark has risen 7.9 percent since Aug. 11.
The futures contract for September delivery fell 0.4 percent to 5,654.
UMC lost NT$0.10, or 0.4 percent, to NT$27.70, after declining 3.5 percent on Wednesday.
Powerchip Semiconductor Corp (
"It is only a minor correction on UMC's share price over last two days after it rose almost 20 percent over the last two weeks," said Simon Chao (
Taiwan Semiconductor Manu-facturing Co (TSMC,
Financial stocks such as Chinatrust Financial Holding Co (中信金控) and Fubon Financial Holding Co (富邦金控) advanced after Standard & Poor's raised the outlook for the nation's banking industry to "stable" from "negative," citing progress made in resolving bad loans and improving loan-loss coverage.
Chinatrust gained NT$0.40, or 1.4 percent, to NT$28.90. Fubon Financial added 20, or 0.6 percent, to NT$31.40.
China Steel fell NT$0.30, or 1.1 percent, to NT$27.20.
Nan Ya Plastics Corp (南亞 科技) was unchanged at NT$42.60.