Taiwan stocks fell for a fourth day, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after Goldman Sachs Group Inc cut the 2002 earnings forecast for the nation's biggest listed company by a fifth.
Electronics shares were the benchmark index's biggest decliners after Intel Corp said first-quarter sales may drop, signaling a delay in the semiconductor industry's recovery.
The TAIEX shed 104.41, or 1.9 percent, to 5488.33, bringing its four-day slump to 6.5 percent, though the index is up 59 percent since Oct. 3. Within the index, 336 stocks rose and 158 fell. The total value of trade was NT$116 billion (US$3.3 billion), about the same as Tuesday.
"Certainly stocks have done too much, too fast," said Emil Wolter, who helps manage about US$1.5 billion in global emerging markets at Pictet Asset Management Ltd in London. "Leading up to Chinese New Year, there may be a pullback." TSMC fell NT$2.50, or 2.9 percent, to NT$85. Its US shares shed 0.4 percent to US$18.14, a 45 percent premium to the Taiwan shares.
Goldman Sachs cut its 2002 earnings per share forecast for the biggest made-to-order chipmaker by a fifth to NT$2.7.
United Microelectronics Corp (UMC, 聯電), the No. 2 made-to-order chipmaker, fell NT$1.3, or 2.9 percent, to NT$43.
Intel Corp, the biggest chipmaker, said first-quarter sales may miss some estimates after earnings in the fourth quarter slumped 77 percent because of a slowdown in sales. That may make investors skeptical as to whether chip demand is going to pick up through 2002.
Memory chipmakers declined after the price of the 128MB dynamic random access memory chip fell 2 percent to US$3.45 on Tuesday from US$3.52 on Monday, according to DRAM Exchange, a market place for memory chips. Still, the price of the 128 DRAM has more than tripled since Nov. 8.
Mosel Vitelic Inc (茂矽電子) tumbled NT$1.30, or 6.8 percent, to NT$17.90. Nanya Technology Corp (南亞科技) fell NT$3, or 6.9 percent, to NT$40.60. Powerchip Semiconductor Corp (力晶半導體) dropped NT$2, or 6.8 percent, to NT$27.50. Winbond Electronics Corp (華邦電子) fell 6.8 percent, to NT$24.70.
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