Taiwan's key stock index posted its biggest decline in two weeks, led by computer-motherboard maker Asustek Computer Inc (華碩電腦), after Goldman Sachs Group Inc said motherboard orders in April are lower than in March.
The TWSE Index slid 73.14, or 1.3 percent, to 5516.20, its biggest drop in percentage terms since April 9. Total value of trade was NT$60 billion (US$1.8 billion), 29 percent less than this year's daily average of NT$84.9 billion.
Investors are nervous after the US said it will sell four Kidd-class destroyers, eight diesel-electric submarines and up to a dozen reconnaissance aircraft to Taiwan.
Computer-motherboard makers dropped. Goldman Sachs Group said major motherboard manufacturers are reporting weekly shipments of 75 to 85 percent of the level seen in early March. Goldman says weaker demand from Europe and technology changes have depressed shipments.
Asustek Computer fell NT$7, or 4.4 percent, to NT$153. Elitegroup Computer Systems Ltd (
Computer-memory chipmakers fell. Thomas Weisal Partners, a brokerage, said the spot price of the 64-megabyte dynamic random access memory (DRAM) chip fell 3.1 percent to $2.18 yesterday. The spot price of the 128-megabyte DRAM fell 1.9 percent to US$4.19.
Nanya Technology Corp (
Hon Hai Precision Industry Ltd (鴻海精密) fell NT$1, or 0.5 percent, to NT$200 on concern its business will be hurt by tensions arising from U.S arm sales to Taiwan. The electronics components maker has factories in China.
United Microelectronics Corp (UMC, 聯電) fell NT$1, or 1.9 percent, to NT$51.50. The second-biggest made-to-order chipmaker's first-quarter profit will probably be NT$7.3 billion compared with NT$7.5 billion last year, according to a survey of six analysts. UMC will reports its earnings on Monday.
Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) fell NT$1.50 to NT$86.50. First-quarter profit may be NT$10.04 billion compared with NT$10.09 billion a year ago, according to five analysts surveyed. TSMC will report its profit tomorrow.
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