Taiwan stocks fell, led by Asustek Computer Inc (
The key TWSE Index fell 82.33, or 2.2 percent, to 3698.84, after falling as much as 2.3 percent. Two stocks fell for every one that rose. On Tuesday, the Taiwan government cut the daily limit on stock declines to 3.5 percent from 7 percent through Sept. 28.
Some companies told us "that there will be a 3 percent to 5 percent sales shortfall in September based on company guidance because for three days flights were interrupted" after the attacks, said Teresa Chen, an analyst at Deutsche Bank Securities in Taiwan. "The terrorist attacks may have affected consumer confidence and people may delay purchases of computers."
Analysts said the index may drop further as earnings of Taiwanese companies will suffer from slower US economic growth.
The US is Taiwan's biggest trading partner, taking more than a fifth of the nation's exports.
"Taiwan's corporate fundamentals and economy could suffer more than other Asian markets given its relatively high leverage to the US economy," said Credit Suisse First Boston Inc in a report to clients.
Dresdner Kleinwort Benson expects US gross domestic product growth will slow to 0.7 percent in 2002 from 1 percent in 2001.
The total value of shares traded yesterday was NT$27.79 billion (US$803 million), less than half the year to date daily average of NT$70.1 billion.
Acer Inc (
Chipmakers declined. United Microelectronics Corp's (UMC, 聯電) Chairman Robert Tsao (曹興誠) reiterated the company's third-quarter sales will drop by as much as a fifth from the previous quarter. Tsao made the same forecast in July.
UMC, the second-biggest made-to-order chipmaker, fell NT$1.10, or 3.4 percent, to NT$31.20. UMC's American depositary receipts fell 6.9 percent Wednesday. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the biggest made-to-order chipmaker, fell NT$1.50, or 2.8 percent, to NT$52.50. TSMC's ADRs Wednesday fell 2.9 percent.
Banks fell on concern that credit growth will take a long time to recover, depressing earnings prospects, even as their non-performing loan burden may be alleviated by the rate reduction this week.
China Development Industrial Bank (
Memory chipmakers dropped on concern about slowing demand and as the spot price for their main product remains below the cost of production. The spot price for the 64Mbz dynamic random access memory chip fell to US$0.73, according to DRAM Exchange, a market place for memory chips.
Winbond Electronics Corp (
Insurers slipped on concern claims for damages and personal injury following Typhoon Nari may increase, depressing earnings.
Cathay Life Insurance Co (國泰人壽), the biggest insurer by market value, fell NT$1.30, or 3.4 percent, to NT$37. Taiwan Life Insurance Co (台灣人壽), the third-biggest insurer by market value, fell NT$0.90, or 3.2 percent, to NT$27.30.
Chunghwa Telecom Co (
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from