Stocks fall on news of missed forecasts in US

The nation's key stock index fell for a fourth day, led by Taiwan Semiconductor Manufacturing Co (台積電), after more computer-related companies in the US said they will miss forecasts, suggesting demand for electronic goods from Taiwan won't recover any time soon.

Leaving the broad market mixed, Nan Ya Plastic Corp (南亞塑膠) rose as investors and traders said government funds bought shares to shore up domestic investor confidence.

The TAIEX fell 2.19, or 0.1 percent, to 4,707.01, dropping 3.6 percent in the week. Within the index, 286 stocks rose and 147 fell.

The TAIEX is the third-worst performing market in the last three months, down 19 percent in US dollar terms.

Government funds bought stocks "to try and give people confidence," said Simon Chao, who manages NT$700 million (US$20 million) in Taiwan stocks at President Investment Corp (統一投資) in Taipei.

"The market has fallen a lot in the short term and they need to do something as people don't have confidence, he said."

US-based EMC Corp, the largest maker of corporate computer-data storage systems, said second-quarter profit and sales trailed forecasts because businesses reduced spending on computer-related equipment.

Advanced Micro Devices Inc, Intel Corp's biggest rival in the market for computer processors, also said profit and sales missed forecasts because demand slumped and chip prices dropped.

TSMC fell NT$2.50, or 3.8 percent, to NT$63. The biggest made-to-order chipmaker fell after the Philadelphia Semiconductor Index, a price-weighted index of 16 companies involved in the design, distribution and manufacturing of semiconductors, dropped 3.1 percent Thursday.

Nan Ya Plastic rose NT$0.60, or 1.7 percent, to NT$35.

Asustek Computer Inc (華碩電腦), the fourth-biggest company by market value, rose NT$4, or 2.8 percent, to NT$146.

Cathy Life Insurance Ltd (國泰人壽), the sixth biggest, rose NT$0.70, or 1.8 percent, to NT$39.70.

CMC Magnetics Corp (中環) rose NT$1, or 3 percent, to NT$34.80. The second-biggest maker of recordable compact discs said June sales rose 17 percent on year to NT$1.6 billion, a record high. It will operate at full capacity from next month through the rest of the year to meet orders.

United Microelectronics Corp (聯電) fell NT$1.20, or 2.7 percent, to NT$43.90. The second-biggest made-to-order chipmaker fired 10 workers after an internal e-mail was leaked to competitors, the Digitimes newspaper reported, without citing anyone.