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Taiex slides by 74 points,led by Quanta

Taiex slides by 74 points,led by Quanta

Taiwan stocks fell for a second day. Quanta Computer Inc. dropped after U.S. economic growth cooled to the slowest in four years and China ordered banks to set aside more money as reserves.
"Signs of possible slowing demand in both China and the U.S. are unfavorable for investments," said Dennes Chang, who helps manage US$2.5 billion of assets at Jih Sun Securities Investment Trust Co. in Taipei. "Investors have plenty of reasons to be concerned about Taiwanese companies' outlooks."
Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, gained after it said first-quarter profit rose 49 percent from a year earlier.
The Taiex index dropped 74, or 0.9 percent, to close at 7,875.42 in Taipei. The measure fell 0.6 percent on April 27. For the month of April, the measure declined 0.1 percent. About six stocks declined for every one that rose. Futures due in May slipped 1.2 percent to 7850.
Quanta Computer, which makes notebook computers in China, declined NT$1.70, or 3.4 percent, to NT$48. Taiwan Semiconductor Manufacturing Co., the world's biggest supplier of made-to-order chips, fell NT$0.30, or 0.4 percent, to NT$68.70.
The U.S. economy expanded at a 1.3 percent annual pace in the first quarter, the slowest in four years, the Commerce Department said April 27. The housing slump and a bigger trade deficit tempered growth.
Economists in a Bloomberg News survey had expected a 1.8 percent gain. The U.S. is Taiwan's second-biggest export market. China Airlines
Hon Hai Precision Industry Co., Taiwan's biggest electronics company, climbed NT$3, or 1.4 percent, to NT$221.50. Hon Hai's first-quarter profit rose to NT$15.6 billion from a year earlier. That exceeds the NT$12.3 billion average estimate of nine analysts surveyed by Bloomberg. Citigroup Inc., which has a "buy" rating on Hon Hai, raised its price target on the stock to NT$300 from NT$276 yesterday.
Elsewhere, Acer Inc., the world's third-largest computer supplier, declined NT$1.40, or 2.2 percent, to NT$63.60. Acer will buy a small personal computer company within five months, said J.T. Wang, chairman of the Taipei-based company. The target company is "not in the U.S.," Wang said, without giving further details of the acquisition.
China Airlines, Taiwan's largest carrier, fell NT$0.30, or 2 percent, to NT$14.60. China Airlines reported a loss in the first quarter, compared with a year-earlier profit. The airline made a loss of NT$805.8 million in the three months ended March 31. That trailed the median estimate of a NT$234 million profit in a Bloomberg News survey of four analysts.


Updated : 2020-12-06 07:02 GMT+08:00