Asustek leads stocks down

Stocks fell, led by Asustek Computer Inc (華碩電腦), after the nation's largest computer-motherboard maker reported a greater-than-expected drop in profit.

The TAIEX fell 139.36, or 2.3 percent, to 6,065.73. The index has fallen 6 percent in the past four trading days on concern an economic recovery in the US may lag expectations, damping orders for computers and electronics parts made in Taiwan.

"The supposition of a US-led recovery in the second half is being questioned," said Bryan Chiang, who helps manage NT$1.8 billion (US$52 million) at Invesco Taiwan Ltd (景順投顧). "If US companies' outlook is looking bad, that'll affect Taiwan's electronics manufacturers."

Asustek reported first-quarter profit fell a more-than- expected 41 percent to NT$3 billion (US$87 million) as it cut prices to secure orders from customers such as Dell Computer Corp. Asustek fell NT$9, or 6.7 percent, to NT$125.50.

Within the TAIEX, about nine stocks fell for every one that rose. The total value of trade was NT$82 billion (US$2.4 billion), a third below the six-month daily average of NT$122 billion.

Acer Inc (宏電) rose NT$0.90, or 1.9 percent, to NT$48.70 after first-quarter profit rose more than fivefold to NT$4.16 billion.

AU Optronics Corp (友達光電) rose NT$0.50, or 1 percent, to NT$52.50 after the world's third-largest flat-panel display maker said it expects to turn to a full-year profit of NT$14.3 billion on rising demand for flat-panel-screen computer monitors.

Chunghwa Telecom Co (中華電信) rose NT$1, or 2 percent, to NT$51.50. The monopoly phone company said first-quarter profit rose a third to NT$12.5 billion after it slashed its workforce by 17 percent.

Fubon Financial Holding Co (富邦金控) fell NT$0.80, or 2.2 percent, to NT$35.40. The firm, which owns the nation's largest non-life insurer, said it made a first-quarter profit of NT$1.87 billion. It started trading as a financial holding company in December, so no comparative figures were available.

MediaTek Inc (聯發科技) rose NT$22, or 3.5 percent, to NT$653. The nation's second-largest chip designer said first-quarter profit more than quadrupled to NT$3.3 billion after sales tripled on increasing buying of DVD players that use the company's semiconductors.