Taiwan stocks slumped to their lowest level in eight and a half years, led by Taiwan Semicon-ductor Manufacturing Co (TSMC, 台積電), on concern demand for computer chips will dwindle as the US economy may tip into recession.
The key TWSE Index dropped 106.99, or 2.9 percent, to 3,591.85, the lowest level since Feb. 10, 1993. In the week, the index has dropped 4.8 percent. Ten stocks fell for every one that rose.
On Tuesday, the government cut the daily drop limit on stocks to 3.5 percent from 7 percent through Sept. 28.
US GDP is likely to show a 0.5 percent contraction in the third quarter, the first since the first quarter of 1993, according to a Bloomberg News survey.
"We are not investing aggressively in Taiwan," said Jasbeena, who helps manage US$135 million in global investments at Wachovia Asset Management Co.
"The factors that will cause us to reconsider this stance include effective banking reforms, an improvement in sentiment domestically and a clearer picture on global growth and technology cycle," Jasbeena said.
Trading volume at NT$13 billion (US$376 million) today was the lowest since Sept. 27, 1999. The index has dropped 14 percent since Sept. 11 when terrorists attacked the US, losing US$139.7 billion or 15 percent of its market value.
Chipmakers declined. The widely watched Philadelphia Semiconductor Index, a price-weighted index of 16 companies involved in the design and manufacture of chips, dropped 6.2 percent yesterday. The index has slumped 25 percent this week.
TSMC, the biggest made-to-order chipmaker, fell NT$1.50, or 2.9 percent, to NT$51. TSMC's American depositary receipts yesterday fell 5.5 percent to US$9.03, a 52-week low. United Microelectronics Corp (UMC,
Computer makers dropped on concerns their biggest market, the US, may slide into recession, depressing consumer demand for electronics.
Acer Inc (
Compal Electronics Inc (
Hon Hai Precision Industry Co (
Quanta Computer Inc (廣達電腦), Taiwan's biggest notebook computer maker, fell NT$2, or 3.2 percent, to NT$61, a 52-week low.
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) fell NT$1.20, or 3.2 percent, to NT$35.80.
Fubon Insurance Co (富邦產險), the second- biggest insurer by market value, fell NT$0.10, or 0.4 percent, to NT$27.60.
Taiwan Life Insurance Co (
Memory chipmakers fell on concern about slowing demand as the spot price for their main product remains below the cost of production. The spot price for the 64-megabit dynamic random access memory chip fell to US$0.72, according to DRAM Exchange, a market place for memory chips.
Winbond Electronics Corp (
Mosel Vitelic Inc (茂矽電子) fell NT$0.20, or 2.9 percent, to NT$6.70, a 52-week low.
Nanya Technology Corp (
Transport stocks slid. Airline shares tumbled on concern people are cutting back on travel after last week's terrorist attacks in the US Shipping stocks decline on concern that global trade will drop as economies slow.
China Airlines Co (
Evergreen Marine Corp (
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique