Taiwan stocks fell, led by Taiwan Semiconductor Manufacturing Co (TSMC,
The TWSE Index slid 36.09, or 0.9 percent, to 4136.54, after earlier rising as much as 0.5 percent. Seven stocks fell for every three that rose. The total value of trade today was NT$69 billion (US$2 billion), a 3 percent increase from this year's daily average.
"The Development Fund selling ADRs may put some pressure on the underlying stock but won't have a big impact," said Ming Kai Cheng, an analyst at CLSA Ltd in Taiwan. "The premium of the ADRs over the underlying stock is too high that people may sell the ADRs and move into the local shares."
TSMC fell US$0.50, or 0.7 percent, to NT$67.50. Its ADRs shed 0.3 percent to US$14.45. The government's Development Fund, which has about a 12 percent stake in TSMC, will sell 20 million ADRs in the biggest made-to-order chipmaker at a date still to be decided, TSMC said. As of yesterday, TSMC's ADRs traded at a 47 percent premium to the local shares.
United Microelectronics Corp (UMC, 聯電), whose ADRs trade at a 41 percent premium, fell US$0.30, or 0.9 percent, to NT$33.70.
Airline stocks fell after an American Airlines Airbus A300 jetliner carrying 255 people crashed in Queens, New York, renewing fears fewer people will fly in the aftermath of the Sept. 11 attacks. US authorities say the crash was an accident.
China Airlines Co (華航), the nation's biggest airline, fell US$0.30, or 2.5 percent, to NT$11.75. Eva Airways Corp (長榮航空), Taiwan's second-biggest airline, lost US$0.25, or 3.5 percent, to NT$7.
Some memory chipmakers gained as spot prices rose on evidence of improved demand for computers. The spot price for the 133 megabit DRAM chips has climbed 15 percent from its year low of US$1.48 to US$1.70, according to DRAM Exchange, a market place for memory chips. Mosel Vitelic (
Chih Lien Industrial Co (
Hon Hai Precision Industry Co (
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