UMC share-sale rumors spur drop in high-tech stocks

Taiwan stocks fell, paced by Mediatek Inc (聯發科技), on a report United Microelectronics Corp (UMC, 聯電) plans to sell 3 million shares of the company, one of the largest sellers of chips for digital video disc players. Mediatek fell NT$25, or 3.4 percent, to NT$703.

UMC fell along with other computer-related shares as some investors said they expect personal computer sales to be slower than expected in the second quarter.

The TAIEX fell 65.38, or 1.1 percent, to 5906.73. Within the index, 232 stocks rose, 264 fell, and 64 were unchanged.

The total value of trade was NT$85.5 billion (US$2.4 billion), which is four-fifths of the average in the past six months.

Makers of computer motherboards and other computer parts fell as motherboard sales are expected to fall by up to 15 percent in the second quarter from the first, local media reported.