Taiwan stocks fell, led by Asustek Computer Inc (
The key TWSE Index fell 82.33, or 2.2 percent, to 3698.84, after falling as much as 2.3 percent. Two stocks fell for every one that rose. On Tuesday, the Taiwan government cut the daily limit on stock declines to 3.5 percent from 7 percent through Sept. 28.
Some companies told us "that there will be a 3 percent to 5 percent sales shortfall in September based on company guidance because for three days flights were interrupted" after the attacks, said Teresa Chen, an analyst at Deutsche Bank Securities in Taiwan. "The terrorist attacks may have affected consumer confidence and people may delay purchases of computers."
Analysts said the index may drop further as earnings of Taiwanese companies will suffer from slower US economic growth.
The US is Taiwan's biggest trading partner, taking more than a fifth of the nation's exports.
"Taiwan's corporate fundamentals and economy could suffer more than other Asian markets given its relatively high leverage to the US economy," said Credit Suisse First Boston Inc in a report to clients.
Dresdner Kleinwort Benson expects US gross domestic product growth will slow to 0.7 percent in 2002 from 1 percent in 2001.
The total value of shares traded yesterday was NT$27.79 billion (US$803 million), less than half the year to date daily average of NT$70.1 billion.
Acer Inc (
Chipmakers declined. United Microelectronics Corp's (UMC, 聯電) Chairman Robert Tsao (曹興誠) reiterated the company's third-quarter sales will drop by as much as a fifth from the previous quarter. Tsao made the same forecast in July.
UMC, the second-biggest made-to-order chipmaker, fell NT$1.10, or 3.4 percent, to NT$31.20. UMC's American depositary receipts fell 6.9 percent Wednesday. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the biggest made-to-order chipmaker, fell NT$1.50, or 2.8 percent, to NT$52.50. TSMC's ADRs Wednesday fell 2.9 percent.
Banks fell on concern that credit growth will take a long time to recover, depressing earnings prospects, even as their non-performing loan burden may be alleviated by the rate reduction this week.
China Development Industrial Bank (
Memory chipmakers dropped on concern about slowing demand and as the spot price for their main product remains below the cost of production. The spot price for the 64Mbz dynamic random access memory chip fell to US$0.73, according to DRAM Exchange, a market place for memory chips.
Winbond Electronics Corp (
Insurers slipped on concern claims for damages and personal injury following Typhoon Nari may increase, depressing earnings.
Cathay Life Insurance Co (國泰人壽), the biggest insurer by market value, fell NT$1.30, or 3.4 percent, to NT$37. Taiwan Life Insurance Co (台灣人壽), the third-biggest insurer by market value, fell NT$0.90, or 3.2 percent, to NT$27.30.
Chunghwa Telecom Co (
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
VIOLATION OF NORMS: China’s CCTV broadcast claimed that Beijing could use Interpol to issue arrest warrants, which the MAC slammed as an affront to order The Mainland Affairs Council (MAC) yesterday condemned the Chinese Communist Party (CCP) for attempts to intimidate Taiwanese through “transnational repression.” The council issued the remarks after state broadcaster China Central Television (CCTV) yesterday during a news broadcast aired a video targeting Democratic Progressive Party (DPP) Legislator Puma Shen (沈伯洋), threatening him with “cross-border repression” and saying: “Stop now, or you will be next,” in what Taipei officials said was an attempt to intimidate not only Shen, but also the broader Taiwanese public. The MAC in a statement condemned the threat, accusing Beijing of trying to instill fear and self-censorship among Taiwanese and
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