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Wed, Jul 04, 2001 - Page 24 News List

TAIEX falls, semiconductors down on UMC reports


Taiwan stocks fell, led by United Microelectronics Corp (UMC, 聯電), after the chipmaker's chairman said in an e-mail to employees it may close a plant.

The TAIEX dropped 43.04, or 0.9 percent, to 4,843.82.

Within the index, 353 stocks fell and 74 rose. The total value of trading today was NT$28.5 billion (US$828 million), the second lowest daily turnover this year.

"The question is whether there will be an extended drought in technology spending," said Johnny Summers, who helps manage US$300 million in Asian stocks at Groupama Asset Management in London. "Share prices reflect a pretty dismal view." Over the last three months, the TAIEX has slid 15 percent, the second-worst performing stock market in the world in US dollar terms.

UMC fell NT$0.60, or 1.3 percent, to NT$45.90. The No. 2 contract chip maker may close plants to cut costs as demand for semiconductors drops, according to an e-mail by UMC Chairman Robert Tsao (曹興誠). UMC currently has nine plants in operation.

In related news, Taiwan Semiconductor Manufacturing Co (台積電), the largest contract maker by market value, fell NT$0.50, or 0.8 percent, to NT$66.50 on the report.

VIA Technologies Inc (威盛電子) fell NT$10, or 4.4 percent, to NT$220, bringing its two-day decline to 7.7 percent.

Taiwan's biggest chip designer said June sales fell 25 percent to NT$2 billion from May. The June sales figure was the lowest monthly sales figure for the company since February 2000.

TAIEX facts:

* The TAIEX closed at 4,843.82 with a fall of 43.04 points, or 0.9 percent on the day.

* Daily turnover came in at NT$28.5 billion (US$828 million), second lowest in 2001.

* The TAIEX has fallen 15 percent thus far this year, largely attributed to tech stocks.

Information: bloomberg

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