TAIEX sheds another 2.4%

The nation's key stock index fell to its lowest this year, led by exporters such as United Microelec-tronics Corp (聯電), on concern an economic recovery in the US may lag expectations, damping corporate profits.

The TAIEX slumped 131.53, or 2.4 percent, to 5,443.18, its lowest since Dec. 28. Within the index, 18 stocks fell for every one that rose. The total value of trade was NT$60.4 billion (US$1.7 billion), less than half the six-month daily average of NT$123 billion.

The index has lost 16 percent in the past month on concern about the speed and strength of a US recovery. The US index of leading economic indicators fell during April, the first drop in seven months. That was worse than analysts' forecasts and pointed to a moderate pace of expansion. The US is the second-largest buyer of the nation's exports.

UMC, the world's second-largest made-to-order chipmaker, which sold almost three-tenths of its semiconductors to the US in the first quarter, fell NT$1.90, or 3.9 percent, to NT$46.30.

"The speed of the economic recovery is lagging expectations," said Hsieh Ching-hui, who manages NT$480 million in stocks at KGI Securities Investment Trust Co (中信投信). "After the correction in the electronics sector since April, pressure will rise on a correction in other sectors."

Advanced Semiconductor Engineering Inc (日月光) fell NT$0.80, or 2.6 percent, to NT$29.70 after the world's second-largest chip packager said three units may offer as many as 183.8 million shares for sale overseas to raise funds for expansion.

AU Optronics Corp (友達光電) fell NT$3, or 6.9 percent, to NT$40.60 on concern flat-panel display prices may have peaked, forcing the world's third-largest flat-panel display maker to sell shares at a discount.

Chung Kuo Insurance Co (中國人壽) surged NT$0.70, or 6.7 percent, to NT$11.15 after it said it plans to combine with CTB Financial Holding Co (交銀金控), the nation's ninth-largest financial company, as insurers, banks, brokerages and money managers seek size and scope to survive in an increasingly deregulated industry.

Gamania Digital Entertainment Co (遊戲橘子), the Taiwan distributor of NCsoft Corp's Lineage online game, rose NT$9, or 6.7 percent, to NT$142 on the stock's debut on the over-the-counter exchange.

Mosel Vitelic Inc (茂矽) fell NT$0.85, or 6.7 percent to NT$11.90 ahead of an announcement by the stock exchange to halt margin trading in companies whose net worth per share last year fell below their nominal value of NT$10 each.