TAIEX falls for sixth session to lowest level this year

Stocks fell for a sixth session yesterday after the government said exports in June declined for a fourth month and may not grow until next year. Via Technologies Inc (威盛電子) led the drop.

The TAIEX fell 40.59, or 0.9 percent, to 4,616.71, its lowest this year. Within the index, 216 stocks rose, 159 fell, and 132 were unchanged. Trade at NT$35.3 billion (US$1 billion) was 55 percent lower than the six-month daily average of NT$78.5 billion.

Exports in June fell 16.6 percent from a year earlier to US$10.3 billion, the ministry of finance said. Imports fell 25.2 percent to US$8.6 billion.

"The second quarter was clearly rough and probably the worst for the year," said Michael Yeh, who manages NT$400 million in Taiwan stocks at United Securities Investment Trust Corp (聯和證券投信). "We'll keep an eye out to see if the situation improves in the third quarter."

Government buying of the market's biggest companies such as Taiwan Semiconductor Manu-facturing Co (台積電) limited the decline to less than 1 percent, investors said.

"Trade volume is quite low, so the government could be buying Chunghwa Telecom, TSMC and UMC," Yeh said.

Companies that make parts for or compete with Advanced Micro Devices Inc fell after the second-largest maker of chips, which store data while cellphones and other devices are shut off, said demand fell more than expected in the second quarter. VIA Technologies, which makes chips that support Advanced Micro's processors, fell NT$5, or 2.3 percent, to NT$214. Macronix International Co (旺宏電子), Taiwan's biggest flash memory chipmaker, fell NT$0.60, or 1.9 percent, to NT$30.30.

Some of the market's biggest companies rose on government buying, investors said. The government manages a NT$500 billion stock market stabilization fund.

TSMC rose NT$0.50, or 0.8 percent, to NT$61.50. Separately, the company said it earned a net profit in the quarter ended June. The biggest made-to-order chipmaker said sales in June fell 29 percent on year to NT$8.5 billion.

United Microelectronics Corp (聯電) rose NT$0.50, or 1.2 percent, to NT$41.70.

The second-biggest made-to-order semiconductor maker reported lower-than-expected sales last month. UMC said June sales fell 52 percent on year to NT$4.2 billion.

Chunghwa Telecom Co Ltd. (中華電信) rose NT$0.06, or 1.3 percent, to NT$46.6. Acer Inc (宏電) rose NT$0.10, or 0.5 percent, to NT$22.10.

The computer maker said sales last month fell by a third from a year ago to NT$6.1 billion as demand slowed.