Alexa

Market Summary

Investors seen choosing to wait till end holiday

Market Summary

Agence France-Presse and Bloomberg
Taiwan's stocks fell for a second day yesterday. Formosa Petrochemical Corp., the island's largest private oil refiner, dropped after crude fell the most in almost 14 months, which may force gasoline stations to reduce prices at the pumps.
"Refiners are under pressure to cut prices and that will erode profitability," said Liu Juming, a fund manager at Ta Chong Investment Trust Corp., which manages US$1.1 billion in assets.
Quanta Computer Inc., the world's biggest notebook computer maker, fell after it denied a report saying Hon Hai Precision Industry Co. plans to buy the company. Quanta jumped by the daily limit Tuesday.
The Taiex index dropped 39.19, or 0.6 percent, to 6917.69 at 10:40 a.m. in Taipei. About six stocks gained for every five that declined. Futures due in October lost 0.5 percent to 6903.
"Those who might adopt a more aggressive stance would rather do so after the market resumes trading next Wednesday," said Daniel Tseng, Investment Services manager at Fubon Securities.
With the five-day holiday starting tomorrow, investors opted to lock in profits from recent gainers including China plays and financial shares, he said.
Tseng said the prospect that the benchmark index will breach 7,000 points and head for a further upswing after the holiday remains intact.
The magnitude of such a possible upside hinges on turnover, the foremost gauge of investor willingness to push shares even higher, he added.
Quanta lost NT$0.70, or 1.4 percent, to NT$51.10. The stock surged by the daily seven-percent limit Tuesday after a report by the Chinese-language newswire Wealth News said Hon Hai, Taiwan's largest electronics company by sales, plans to take over the company. Quanta and Hon Hai denied the report. Hon Hai slid NT$1, or 0.5 percent, to NT$208.
Benq Corp., Taiwan's largest mobile-phone maker, dropped NT$0.55, or 3 percent, to NT$17.70. Benq, which took over Siemens AG's unprofitable mobile-phone business a year ago, estimates it lost at least 840 million euros (US$1.1 billion) in the handset business on delays in new models.
Powerchip Semiconductor Corp., Taiwan's biggest memory-chip maker, fell NT$0.10, or 0.5 percent, to NT$21. Powerchip plans to issue between 480 million and 600 million shares to be sold overseas in the form of global depositary receipts.
Hsinchu International Bank was limit-up NT$1.45 at NT$22.75, extending its rally after Standard Chartered Bank announced its acquisition of the Taiwan bank at a big premium to its current market price.