Taiwan's key index fell to its lowest this year, led by Taiwan Semicon-ductor Manufacturing Co (TSMC, 台積電), as Advanced Micro Devices Inc (AMD) missed profit forecasts, raising concern the industry won't recover anytime soon.
"AMD's announcement suggests the personal computer and semiconductor industry still can't see when it'll recover," said Fang Kuo-li, who manages about NT$1 billion (US$29 million) in Taiwan stocks at First Global Investment Trust Co.
The TAIEX fell 49.71, or 1.1 percent, to 4,657.30, its fifth day of decline and the lowest since Dec. 27. Within the index, 259 stocks fell, 171 rose, and 77 were unchanged. Trade at NT$32.7 billion (US$948 million) was 59 percent lower than the six-month daily average of NT$79.2 billion.
Still, companies with factories in China including Giant Manufacturing Co (
"Some people hope it will have a positive effect on China-related stocks," said Wu Wen-tong, who manages NT$300 million in Taiwan shares at Taiwan International Investment Management Co.
Chipmakers fell after the Philadelphia Semiconductor Index, a price-weighted index of 16 companies involved in the design, distribution, and manufacturing of semiconductors, had its biggest decline since Oct. 17. TSMC, the biggest made-to-order semiconductor maker, fell NT$2, or 3.2 percent, to NT$61. United Manufacturing Corp (UMC, 聯電), the second biggest, fell NT$2.7, or 6.2 percent, to NT$41.20.
Companies with factories in China rose on anticipation Beijing will this week be selected to host the 2008 summer Olympic Games. Giant Manufacturing, Taiwan's biggest bicycle maker, rose NT$0.37, or 0.9 percent, to NT$39.50.
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