TAIEX plumbs new lows

The nation's main stock index fell to its lowest since August 1995 on concern the economy won't start recovering until the fourth quarter, after a report Tuesday showed exports slipped in June for a fourth month. Delta Electronics Inc (台達電子) led declines.

"Everyone expected the third quarter would see an obvious recovery," said Laurence Tsai, who manages NT$500 million in technology stocks at Barits Securities Investment Trust Co. "It seems that recovery will be delayed."

Stocks also fell as the New Taiwan dollar declined to near a three-year low. The government may be allowing the currency to depreciate to boost the competitiveness of its exports, investors said.

The TAIEX fell 68.42, or 1.5 percent, to 4,548.29, its lowest since Aug. 14, 1995, when China conducted missile tests against Taiwan. Within the index, 357 stocks fell, 95 rose, and 55 were unchanged. Trading at NT$34.5 billion (US$992.1 million), was about half of the six-month daily average of NT$77.8 billion.

Delta Electronics fell NT$4, or 6.3 percent, to NT$60. Taiwan's biggest maker of computer power supplies denied a report by the state-run Central News Agency that Apple Computer Inc had recalled its power adaptors. Apple said last week it was recalling about 570,000 computer power adaptors because they could overheat and pose a fire hazard.

Companies that make computers for Compaq Computer Corp fell after the biggest personal-computer maker said it would fire 1,500 workers after a slump in European demand and price competition caused second-quarter sales to miss forecasts.

Inventec Co (英業達) lost NT$1.4, or 6.1 percent, to NT$21.70. Mitac International Corp (神達電腦) fell NT$0.40, or 2.4 percent, to NT$16.50. Arima Computer Corp (華宇電腦) fell NT$1.6, or 6.7 percent, to NT$22.30. First International Computer Inc (大眾電腦) shed NT$0.50, or 3.2 percent, to NT$15.

Ambit Microsystems Corp (國電) rose NT$1, or 0.7 percent, to NT$144. The maker of modems and power systems for notebook computers said it may sell shares overseas. Ambit plans to raise up to US$80 million for fund expansion, said Chief Financial Officer William Hsu.

Microtek International Inc (全友電腦) fell NT$0.30, or 4.1 percent, to NT$7.10. The computer scanner maker is seeking to raise US$54 million by selling foreign currency shares in Shanghai, and plans to file listing plans next January.

VIA Technologies Inc (威盛電子), Taiwan's biggest chipset designer, fell NT$7, or 3.3 percent, to NT$207, its lowest since Jan. 4, on concerns of price competition hitting profits.