Taiwan stocks fell, led by computer manufacturers such as Asustek Computer Inc (華碩電腦), on concern corporate earnings may lag expectations after the Nasdaq Composite Index had its biggest weekly decline since September.
The TAIEX fell 101.84, or 1.6 percent, to 6205.09, its fourth drop in five days. Within the index, three stocks fell for every one that rose. The total value of trade was NT$81.5 billion (US$2.4 billion), a third less than the six-month daily average.
"The second quarter is the traditional weak season for the computer industry, and this year is no exception," said Kevin Hou, who manages NT$200 million (US$5.8 million) at Central Securities Investment Trust Co. "As the recovery in the US becomes less clear, people are less inclined to chase stocks."
While the TAIEX has risen almost two-fifths in the past five months on expectations the US' emergence from recession will boost demand for the country's electronics goods, it's since dropped 4 percent in the last five days on concern the recovery may falter.
Asustek, whose fourth-quarter profit slipped 7 percent to NT$4.5 billion (US$130 million), fell NT$3, or 2.2 percent, to NT$134.50.
Benq Corp (明電) rose 50 cents, or 0.6 percent, to NT$80.
Taiwan's largest mobile-phone maker reported profit rose more than sixfold to NT$2.16 billion in the first quarter because of stronger demand for its handsets and flat-panel displays.
The company forecasts 2002 sales will rise more than two-thirds to more than NT$100 billion, said Benq President Lee Kun-yao (李焜耀).
First Commercial Bank (
Giant Manufacturing Co (巨大) rose 90 cents, or 2.4 percent, to NT$38.40 after Taiwan's largest bicycle maker said first-quarter profit jumped 30 percent to NT$342 million (US$10 million) as sales of branded bikes rose 70 percent in the US. Lite-On Technology Corp (源興科技) rose NT$2.50, or 3.6 percent, to NT$72.
The computer-monitor-screen maker forecast 2002 profit will almost quadruple to NT$8.9 billion (US$256 million). Lite-On Information Technology Corp (建興電子), its optical disk-drive unit, reported first-quarter pre-tax profit more than tripled to NT$2.1 billion.
Macronix International Co (旺宏電子) fell NT$2.10, or 6.8 percent, to NT$29. Taiwan's biggest maker of flash-memory chips turned to a first-quarter loss of NT$2.7 billion, compared with a NT$1.9 billion profit a year ago after sales declined more than half.
Microtek International Inc (全友電腦) fell NT$1.05, or 6.8 percent, to NT$14.45. The computer-scanner maker plans to slash the number of its outstanding shares by more than half to counter NT$2.5 billion of losses.
Mosel Vitelic Inc (台灣茂矽) fell 70 cents, or 3.9 percent, to NT$-17.10. Taiwan's third-largest computer-memory-chip maker by market value forecast a NT$2.6 billion loss this year, becoming the only publicly traded memory-chip maker to predict a loss.
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