Stocks mixed, Chunghwa shares up

Taiwan's TWSE Index fell to its lowest this year, as Quanta Computer Inc (廣達電腦) plunged on concern Hewlett-Packard Co may cut orders to the island's largest notebook-computer maker.

Chunghwa Telecom Co (中華電信) advanced after a Chinese-language newspaper reported overseas investors will take part in a sale of 5.7 percent of the nation's largest phone company today, boosting optimism the government will succeed with the sale after two earlier flops.

The TWSE Index shed 5.46, or 0.1 percent, to 5300.96 as about three stocks rose for every two that fell. The total value of trade was NT$57.9 billion (US$1.7 billion), half the six-month daily average of NT$115.8 billion. Chunghwa jumped NT$2, or 3.8 percent, to NT$54.50 Hewlett-Packard, the world's largest maker of personal computers, may postpone placing notebook computer orders with Taiwan suppliers to July after its purchase of Compaq Computer Corp, Chinese language media reported.

Quanta, Inventec Co (英業達), Arima Computer Corp (華宇), and Compal Electronics Inc (仁寶) make notebook computers for Hewlett-Packard.

"Hewlett-Packard may not want to give big orders to Quanta or Compal because they're big Dell suppliers," said Hsu Wei-che, an analyst at Taiyu Securities Co (台育證券). "If it wants to cut its suppliers, it will probably stick with Inventec and Arima."

Quanta, about half of whose notebook computers are sold to Dell Computer Corp, fell NT$6, or 6.4 percent, to NT$87.50.

China Motor Co (中華汽車) rose NT$1.90, or 6 percent, to NT$33.50. The nation's largest vehicle maker said pretax profit in May surged more than fourfold from a year earlier to NT$681 million.

Lite-On Technology Corp (光寶科技) slid NT$2.50, or 4.5 percent, to NT$53.50 as investors questioned the cost benefits and transparency of a merger with GVC Corp (致福), which makes mobile phones, Lite-On Electronics Inc (源興電子) and Silitek Corp (旭麗).

Pan Asia Bank Co (泛亞銀行) rose 17 cents, or 6.7 percent, to NT$2.72. The Central Investment Holding Co (中央投資), an investment unit of the KMT, sold its stake of 150 million shares, or about a 10th of Pan Asia's shares outstanding, for NT$2.50 a share, a local newspaper reported.