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Taiex shares down following oil price rise

Taiex shares down following oil price rise

Taiwan's Taiex index fell. Hon Hai Precision Industry Co. and High Tech Computer Corp. paced declines among exporters after crude oil prices rose to the highest in almost five weeks.

"Oil is creeping back up again, renewing worries about inflation," said Albert King, who oversees the equivalent of US$10 million as chief investment officer of Prophet Capital Inc. in Taipei. "The inflation pressure may prompt central banks to raise rates, which will slow consumer demand."

Delta Electronics Inc., the world's biggest maker of power-supply systems used in portable electronics, gained after a report, citing the company's chairman, said Delta's sales in 2006 will be better than this year's.

The index lost 5.11, or 0.1 percent, to 6261.18 at the 1:30 p.m. close in Taipei. The index earlier gained as much as 0.2 and fell as much as 0.3 percent. About the same number of stocks gained and declined. Futures due in December declined 0.5 percent to 6241.

Hon Hai Precision, Taiwan's largest electronics exporter by sales, dropped NT$1.50, or 0.9 percent, to NT$173. High Tech, a maker of cellular phones that use an operating system from Microsoft Corp., fell NT$25, or 4.8 percent, to NT$496.

Oil rose 3.2 percent to US$61.30 a barrel, the highest closing price since Nov. 3. The contract recently traded at US$61.08 a barrel. Taiwan imports almost all its fuel consumption.

Delta's sales in 2006 will improve as demand for game consoles and digital music players fuel the need for power-supply systems, the Economic Daily News reported today, citing company Chairman Cheng Chung-hua. Delta rose NT$0.40, or 0.6 percent, to NT$68.10.

The following stocks also rose or fell. Stock symbols are in parentheses after the company names.

Quanta Computer Inc., the world's biggest notebook computer maker, rose 20 cents, or 0.4 percent, to NT$50.20. Royal Philips Electronics NV placed orders for liquid-crystal display televisions with Quanta, the Economic Daily News reported today without saying where it obtained the information.

Quanta will make LCD TVs with panels diagonally measuring 32 inches, 37 inches and 42 inches for Philips, with an initial order for more than 10,000 units, the newspaper said.

Zenitron Corp, which distributor of Rohm Co.'s products in Taiwan, rose NT$0.05 cents, or 0.2 percent, to NT$21.35. Nomura Holdings Inc. raised Rohm Co.'s stock rating to "strong buy" on rising demand for its mobile phone chips. Rohm is benefiting as mobile phone users replace simpler models with those that can access the Internet and download music or video and require more of the kind of semiconductors Rohm makes.

Updated : 2021-06-18 20:41 GMT+08:00