Taiwan stocks hit 2-month closing low
Updated: 2010-02-02 07:36
(HK Edition)
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TAIPEI: Taiwan stocks closed 1.52 percent lower at a more than two-month closing low yesterday, with tech shares such as TSMC down, as a slide on Wall Street raised concerns over tech demand for the island's exporters.
The main TAIEX share index fell 115.77 points to 7,524.67, its weakest close since November 27, 2009. Turnover was thin at NT$90.3 billion ($2.8 billion) from Friday's NT$117.2 billion.
"Investors are still worried about possible withdrawal of funds following governments' tightening control of monetary policies," said Bevan Yeh, a senior fund manager with Prudential Financial Securities Investment Trust.
"Besides, the Chinese New Year vacation is long this year, investors are afraid that some unexpected news will break out during the holidays. They don't want to take a risk."
TSMC, the world's top contract chip maker, slipped 2.76 percent, dragging down the semiconductor sub-index 2.37 percent.
Smaller rival UMC ended down 3.43 percent. Mediatek Inc, the world's number 2 cellphone chip maker, dropped 2.88 percent before it announced that its net profit in the fourth quarter tripled to NT$8.7 billion from NT$2.9 billion in the fourth quarter of 2008.
Quanta Computer, the world's largest contract laptop PC maker, bucked the trend by jumping 0.78 percent, after the firm said on Friday it plans to lift revenues by over a quarter this year, backed by a switch in focus to higher-end computers.
Among financial firms, Fubon Financial, parent of Taiwan's second leading life insurer, fell 0.94 percent after the Economic Daily reported 11 banks, including Fubon Financial, are expected to invest up to NT$140 billion ($4.4 billion) in buying stakes in mainland lenders.
Fubon Financial said yesterday that its mutual fund arm will apply to mainland regulators to buy up to $200 million in mainland stocks.
Investors are not sure whether the banks will earn any money after investing on the mainland, as there are other overseas competitors, said Kevin Chung, an analyst with Jih Sun Investment Consulting Co.
Even if Taipei allowed the banks to invest on the mainland, Beijing may have its own restrictions, said Chung.
China Daily/Reuters
(HK Edition 02/02/2010 page2)