Alexa

Taiwan stocks down; Mediatek, Shin Kong fall

Taiwan stocks down; Mediatek, Shin Kong fall

Taiwan's stocks fell slightly yesterday on a decline in electronics manufacturers. Mediatek Inc. plunged the most in more than two years after the company cut its fourth-quarter sales forecast for the second time since November.
"Mediatek's announcement heightened investors' pessimistic views on electronic makers," said Ashley Kang, who helps manage US$1.7 billion at IBT Securities Co. in Taipei. "Falling chip sales is a reflection of weak demand for electronics."
Shin Kong Financial Holding Co. fell after announcing a writedown of investments related to U.S. subprime loans. Cathay Financial Holding Co. rose after denying a report on Tuesday that said it plans to buy Taipei-based Chinfon Bank.
The Taiex index dropped 10.68, or 0.1 percent, to close at 8,156.39 in Taipei, snapping a three-day advance and paring the benchmark's annual gain to 4.3 percent. About three stocks declined for every two that rose yesterday. Futures due in January climbed 0.5 percent to 8,185.
Mediatek, the island's biggest chip designer, slumped NT$29.50, or the daily limit of 7 percent, to NT$393.50. That's its steepest decline since August 10, 2005. AU Optronics Corp., the island's largest LCD maker, fell 70 cents, or 1.2 percent, to NT$60.20. Quanta Computer Inc., the world's largest maker of notebook computers, slipped 50 cents, or 1.1 percent, to NT$44.75.
Fourth-quarter sales will probably fall about 25 percent from the previous three months, Mediatek said on Tuesday, without elaborating. The company, which depends on the Chinese market for more than half of its mobile-phone semiconductor sales, said on November 30 that revenue would decline 15 percent to 20 percent, compared with its November 2 forecast for a drop of 12 percent.
CDO Loss
Shin Kong fell NT$0.65, or 2.8 percent, to NT$22.35. The company said its life insurance unit, Taiwan's No. 3 life insurer, will incur a loss of US$57.7 million in collateralized debt obligations. Shin Kong Life Insurance Co. will book the loss in the fourth quarter, the company said in a filing to the Taiwan Stock Exchange late Tuesday.
Cathay Financial, Taiwan's biggest financial-services company, rose 80 cents, or 1.2 percent, to NT$67. Taipei-based Cathay made the denial in a filing to Taiwan's stock exchange on Tuesday. Lee Chang-ken, Cathay's chief strategy officer, earlier said by phone that he "hadn't heard about" plans to buy the privately owned Chinfon Bank.
Cathay's board meets December 31 to approve the purchase of Chinfon Bank, the Economic Daily News reported. The acquisition will add 36 branches to Cathay's 161, according to the newspaper, which didn't cite anyone.


Updated : 2021-02-28 18:22 GMT+08:00