Taiwan stocks fell for a fifth day in six, led by United Microelectronics Corp (UMC, 聯電), on concern demand for semiconductors will decline in the third quarter.
The TWSE Index fell 30.54, or 0.6 percent, to 5039.98.
Within the index, 248 stocks fell, 169 rose, and 91 were unchanged. Trade at NT$32.3 billion (US$940.2 million) was the third lowest this year and 60 percent lower than the six-month daily average of NT$81 billion.
The second-biggest made-to-order chipmaker predicted a second-quarter operating loss and said sales may continue to slide during the July to September quarter.
"In the short term, the bad news will have some negative effect on the stock price," said Michael Yeh, who manages NT$400 million (US$11.6 million) in Taiwan stocks at United Securities Investment Trust Corp (
UMC fell NT$1.6, or 3.2 percent, to NT$48.40. The second-biggest made-to- order chipmaker said sales may continue to slide during the July to September quarter after predicting a 35 percent fall in revenue in the quarter ending June 30 from the previous quarter.
Other chipmakers fell on concern demand for semiconductors will continue to slide after UMC said sales may fall in the third quarter. Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), UMC's larger rival, fell NT$1.5, or 1.6 percent, to NT$90.50. Winbond Electronics Corp (華邦電子), Taiwan's third-biggest chipmaker by market capitalization, slid NT$0.40, or 1.4 percent, to NT$28.70. Macronix International Co (旺宏電子), the fourth biggest, fell NT$0.20, or 0.6 percent, to NT$36.10.
Banks rose 1.2 percent as a group on optimism the legislature will pass laws that would speed up mergers in the industry.
The Legislative Yuan will convene on June 27 for two days to pass six laws, including the Financial Holding Company Act (
Chinatrust Commercial Bank (
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