Home / Taiwan Business
Thu, May 30, 2002 - Page 18 News List

Stocks plunge for a second day on weak US spending

BLOOMBERG AND CNA , TAIPEI

Taiwan stocks fell for a second day, led by Asustek Computer Inc (華碩電腦), after consumer spending in the US rose less than expected in April, damping expectations of a revival in demand for computers and the parts used to run them.

The TWSE Index shed 46.30, or 0.8 percent, to 5623.23 as about five stocks fell for every two that rose. Trade totaled NT$49 billion (US$1.4 billion), almost three-fifths below the six-month daily average of NT$121.5 billion, and the slowest since Oct. 30.

"Electronics are too weak, so the whole market is weak," said Roger Chiao, who helps manage NT$6 billion (US$175 million) in stocks at Capital Securities Investment Trust Co (群益證券). "Trading volume will stay low while investors wait for some direction about the second half of the year." The index has lost more than a 10th of its value in the past month on concern an economic recovery in the US may be delayed.

Asustek, the nation's largest computer-motherboard maker, fell NT$2.50, or 2.1 percent, to NT$116 after Morgan Stanley Dean Witter & Co forecast the company's profit margin in the second quarter would slip from the previous quarter.

The following stocks made significant gains or losses: China Airlines (華航) fell NT$0.95, or 6.7 percent, to NT$13.20. Fubon Financial Holding Co (富邦金控) fell NT$0.20, or 0.6 percent, to NT$33.90. GVC Corp (致福) rose NT$0.20, or 0.8 percent, to NT$24.

Nan Ya Plastic Corp (南亞) fell NT$0.30, or 0.9 percent, to NT$31.80. The unit of Taiwan's largest industrial group received government approval to invest US$19 million to build a plant in China.

Synnex Technology International Corp (聯強) fell NT$0.90, or 1.9 percent, to NT$46.50.

The NT dollar gained against the greenback on the Taipei Foreign Exchange yesterday, up NT$0.07 to close at NT$34.239. A total of US$767 million changed hands compared to NT$690 million on Tuesday.

This story has been viewed 2260 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top