Taiwan's key stock index fell to a one-month low, led by United Microelectronics Corp (
The TWSE Index fell 44.76, or 0.9 percent, to 4,984.88, its lowest since May 21.
Within the index, 258 stocks fell, 155 rose, and 95 were unchanged. Trade at NT$41.7 billion (US$1.2 billion) was almost half the six-month daily average of NT$81.1 billion.
UMC's stock price is trading at 36 times this year's estimated earnings, according to 15 analysts surveyed by IBES International. That compares with 16 times for the TWSE Index.
I'm selling high price-earnings-ratio stocks and shifting into low-price-earnings stocks for risk aversion right now," said James Chen, who manages NT$1.8 billion (US$52.2 million) in Taiwan stocks at National Investment Trust Co (
Stocks fell after the NT dollar weakened as much as 0.3 percent against the US dollar, eroding the value of stock holdings.
Chipmakers that make semiconductors on a made-to-order basis fell on concern their share prices are too high relative to future earnings.
Wednesday, UMC's US-listed shares fell 4 percent and Taiwan Semiconductor Manufacturing Corp's (
UMC, the second-biggest made-to-order chipmaker, fell NT$1.3, or 2.7 percent, to NT$46.70. TSMC, UMC's bigger rival, fell NT$4, or 4.4 percent, to NT$86.
Aurora Corp (震旦行) fell NT$1.7, or 6.5 percent, to NT$25. Taiwan's largest retailer of cell-phones by market capitalization paid a 10 percent dividend yesterday.
Chunghwa Telecom Co (
Compeq Manufacturing Co (華通電子) rose NT$2.50, or 3.9 percent, to NT$67. The country's biggest printed circuit board maker by market value said in a statement to the Taiwan Stock Exchange that profit in the second quarter would improve over the first quarter as the depreciation of the Taiwan dollar against the US dollar and company cost-cutting measures increased margins.
First International Computer Inc (
Pro MOs Technologies Inc (茂德科技), whose major shareholders are Infineon Technologies AG and Mosel Vitelic Inc (台灣茂矽), fell NT$0.70, or 2.7 percent, to NT$25.30.
Infineon, Europe's second-largest chipmaker, said it expected to report a loss in the quarter through June as falling chip prices and excess inventories slashed earnings.
Sunplus Technology Co (
RESPONSE: The transit sends a message that China’s alignment with other countries would not deter the West from defending freedom of navigation, an academic said Canadian frigate the Ville de Quebec and Australian guided-missile destroyer the Brisbane transited the Taiwan Strait yesterday morning, the first time the two nations have conducted a joint freedom of navigation operation. The Canadian and Australian militaries did not immediately respond to requests for comment. The Ministry of National Defense declined to confirm the passage, saying only that Taiwan’s armed forces had deployed surveillance and reconnaissance assets, along with warships and combat aircraft, to safeguard security across the Strait. The two vessels were observed transiting northward along the eastern side of the Taiwan Strait’s median line, with Japan being their most likely destination,
GLOBAL ISSUE: If China annexes Taiwan, ‘it will not stop its expansion there, as it only becomes stronger and has more force to expand further,’ the president said China’s military and diplomatic expansion is not a sole issue for Taiwan, but one that risks world peace, President William Lai (賴清德) said yesterday, adding that Taiwan would stand with the alliance of democratic countries to preserve peace through deterrence. Lai made the remark in an exclusive interview with the Chinese-language Liberty Times (sister paper of the Taipei Times). “China is strategically pushing forward to change the international order,” Lai said, adding that China established the Asia Infrastructure Investment Bank, launched the Belt and Road Initiative, and pushed for yuan internationalization, because it wants to replace the democratic rules-based international
RELEASED: Ko emerged from a courthouse before about 700 supporters, describing his year in custody as a period of ‘suffering’ and vowed to ‘not surrender’ Former Taiwan People’s Party (TPP) chairman Ko Wen-je (柯文哲) was released on NT$70 million (US$2.29 million) bail yesterday, bringing an end to his year-long incommunicado detention as he awaits trial on corruption charges. Under the conditions set by the Taipei District Court on Friday, Ko must remain at a registered address, wear a GPS-enabled ankle monitor and is prohibited from leaving the country. He is also barred from contacting codefendants or witnesses. After Ko’s wife, Peggy Chen (陳佩琪), posted bail, Ko was transported from the Taipei Detention Center to the Taipei District Court at 12:20pm, where he was fitted with the tracking
The National Development Council (NDC) yesterday unveiled details of new regulations that ease restrictions on foreigners working or living in Taiwan, as part of a bid to attract skilled workers from abroad. The regulations, which could go into effect in the first quarter of next year, stem from amendments to the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) passed by lawmakers on Aug. 29. Students categorized as “overseas compatriots” would be allowed to stay and work in Taiwan in the two years after their graduation without obtaining additional permits, doing away with the evaluation process that is currently required,
RSS