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Sat, Mar 02, 2002 - Page 18 News List

TAIEX falls 0.3% on worries of slow recovery in the US


The TAIEX declined on concern that a slower-than-expected recovery in the US, the nation's biggest export market, may dampen demand for computer parts at Asustek Computer Inc (華碩電腦).

United Microelectronics Corp (UMC, 聯電) rose 5.2 percent on reports that the second-largest made-to-order chipmaker's sales will surge in the second quarter as orders rise.

The TAIEX fell 15.33, or 0.3 percent, to 5,680.78. For the week, the index rose 1.3 percent. The index has rallied 65 percent since hitting an 8-and-a-half-year low on Oct. 3, a gain that has more than reflected the impact of an economic recovery in the US, investors said.

"The economic situation should start to improve gradually, but I see no positive news to drive the market before the end of March," said Telan Chen, who manages NT$5 billion (US$142 million) in stocks at Cathay Securities Investment Trust Ltd (國泰投信).

Within the index, 301 stocks rose and 206 fell. The total value of trade was NT$113.4 billion (US$3.2 billion), almost a fifth higher than the six-month daily average of NT$96.4 billion.

Asustek, Taiwan's largest motherboard maker, fell NT$4, or 2.4 percent, to NT$166. Rival Elitegroup Computer Systems Co (精英電腦) dropped NT$5, or 2.4 percent, to NT$203. Hon Hai Precision Industry Co (鴻海精密), which makes everything in a computer except the chips, slid NT$5, or 3.1 percent, to NT$155.

Quanta Computer Inc (廣達電腦), Taiwan's largest notebook computer maker, lost NT$2.50, or 2.1 percent, to NT$118.50.

UMC surged NT$2.30, or 5.2 percent, to NT$47. The second-largest made-to-order chipmaker's second-quarter sales will exceed last year's fourth quarter as orders rise, a Chinese-language newspaper reported, citing the company.

"I'm very positive on the stock," said Lloyd Tsai (蔡隆裕), who helps manage US$77 million in stocks, including UMC, at Invesco Taiwan Ltd (景順投信).

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