Taiwan stocks fell yesterday, with flat-panel-displays and computer monitors-makers such as Chung-hwa Picture Tubes Ltd (中華映管) pacing the drop on concern about falling product prices as inventory accumulates.
"Companies have been giving mostly cautious outlooks, and many are still firing staff and cutting costs," said Vincent Chen, who helps manage NT$1.2 billion (US$35 million) in Taiwanese equities at Union Securities Investment Trust Co (聯邦投信). "Fundamentally, there's selling pressure."
The TWSE Index fell 11.63, or 0.2 percent, to 5,789.84 as two stocks fell for every one that gained. For the week, the index shed 0.3 percent on concern a water shortage will hurt production and raise costs of maintaining sufficient water supplies at chipmakers and other heavy users of water.
Chen sold shares of Chunghwa Picture Thursday. Chunghwa Picture yesterday fell NT$1.5, or 4.8 percent, to NT$30.
Chinatrust Financial Holding Co (中國信託金控) rose NT$0.80, or 2.6 percent, to NT$31.2 from its listing price of NT$30.4. The holding company of delisted Chinatrust Commercial Bank (中國信託銀行), Taiwan's largest credit card issuer, may raise as much as US$600 million by selling bonds convertible into its shares to finance acquisitions.
Micro-Star International Co (微星) rose NT$7, or 5.4 percent, to NT$136, as investors said declines in computer-motherboard-makers were excessive as the slump in demand will probably bottom this month.
Micro-Star shares have fallen 17 percent in the past three months.
Mosel Vitelic Inc (茂矽) fell NT$0.55, or 3.9 percent, to NT$13.7. Taiwan's third-largest memory-chip maker said it's in "constant dialogue" with rival Hynix Semiconductor Inc of South Korea to acquire some of its assets.
Nanya Technology Corp (南亞科技) fell NT$2.1, or 6.5 percent, to NT$30.3 after the price of its main product dropped for the first day in four. The spot price for the benchmark PC133 16X8 128-megabit random access memory chip fell 0.9 percent to US$2.28, according to DrameXchange, a market place for memory chips.
United World Chinese Commercial Bank (世華銀行) fell NT$0.30, or 1.2 percent, to NT$24.7 on a report the government delayed a decision to let its potential acquirers raise their shareholding limits.
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