Taiwan stocks fell, led by Taiwan Semiconductor Manufacturing Co (TSMC,
The TWSE Index fell 111.16, or 2.7 percent, to 4040.77, its lowest close since Oct. 21, 1993. Eight stocks fell for every one that rose. The index is the world's worst performer in US dollar terms in the last three months after losing almost a third of its value.
Investors are concerned TSMC will be among a spate of Taiwan companies that will report earnings this year will fall. Merrill Lynch & Co expects earnings per share for the 40 Taiwan companies it follows to drop 48 percent in 2001 compared to 2000.
The Taiwan Institute of Economic Research (
"The weaker the market and the economy are, the bigger the risk that it sets up the island for renewed financial problems," said Christopher Wood, chief global emerging markets strategist at ABN Amro Asia Ltd. TSMC "shares are hugely expensive without a pick up in PC demand." The total value of shares traded yesterday was NT$36.69 billion (US$1.05 billion), less than half this year's NT$76.62 billion average.
TSMC fell NT$0.50, or 0.9 percent, to NT$57.50. Net income at the biggest chipmaker to other companies' designs may have fallen 99 percent to NT$161 million in the three months to June 30 from a year ago, according to a survey of seven analysts. TSMC will report results tomorrow.
Memory chipmakers declined as the spot price for their main product has fallen from more than US$$9 earlier this year to US$0.88, according to DRAM Exchange, a market place for memory chips.
Winbond Electronics Corp (
The second-biggest maker of recordable compact discs began selling US$100 million of bonds convertible into its shares to overseas investors, less than half the amount originally planned.
Nanya Technology Corp (
Uniglory Marine Ltd (立榮海運) rose NT$0.50, or 6.1 percent, to NT$8.70, bringing its three-day gain to 20 percent on hopes the government may soon initiate direct transport links with China. Chief Financial Officer Chen Cheng-tang said there are hopes a government task force that has met to decide on ways to stimulate the island's economy will recommend direct transport links with China.
United Microelectronics Corp (
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