Taiwan stocks fell 1 percent on Monday as fears over a credit crunch lingered, while investors searched for technology bargains such as LCD maker Chunghwa Picture Tubes Ltd that have better earnings prospects. Taiwan's main TAIEX share index gave up early gains to end down 84.11 points at 8,680.71, extending its decline to a third session.
Thin turnover of T$93.82 billion ($2.9 billion) reflected the cautious mood. "The mainstream is on LCD shares because we have no doubts about the sector's growth in the coming months," said Jerry Chang, a portfolio manager at National Investment Trust.
"But for the big board, chances are slim for it to rebound significantly in the short term," said Chang, who saw initial support at 8,600 points. Big blue chips were weak, with top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) ending flat and electronics parts maker Hon Hai Precision Industry sliding 2 percent.
On the bright side, shares of Chunghwa Picture Tubes surged 6.8 percent to their daily limit and those of larger rival AU Optronics Corp jumped 0.8 percent as they benefit from growing demand for flat-screen PCs and TVs. The electronics sub-index fell 0.3 percent.
Taishin Financial jumped 2.2 percent after local media reported billionaire investor George Soros was considering increasing his stake in the company. The broader financial and insurance sub-index was off 0.3 percent.
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