Taiwan stocks fell on Thursday for a fourth day to a more than two-year closing low, tracking sliding regional peers, with TSMC leading the fall as a slowing world economy spooked investors. The main TAIEX share index was down 2.62 percent, or 172.30 points, at 6,412.63, its lowest closing since July 2006. Today's slide extended the main index's slump to about 10 percent so far this week.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chip maker, dropped 2.91 percent, pulling the electronics sub-index down 2.11 percent. "The weak outlook by some tech firms in their traditional peak season also gave investors little confidence for the third quarter," said Karen Lin, a fund manager at Paradigm Asset Management Co Ltd Lin expected the TAIEX to trade between 6,300-6,600 points on Friday.
Some conservative comments from Taiwan President Ma Ying-jeou also weighed on sentiment. But Quanta Computer and Hon Hai Precision bucked the downward pressure, rising 2.32 percent and ending unchanged, respectively. They outperformed the benchmark index after a newspaper reported Taiwan suppliers of Apple Inc could benefit as the US firm is set to launch new products on September 9. The financial sub-index dropped 4.02 percent, with Cathay Financial, the island's top listed financial holding firm, declining 3.11 percent.
The Taiwan dollar was also on a downward trend, falling for a fourth straight session to a 6-month low on Wednesday. Although a weaker Taiwan dollar could help export-oriented tech firms, Lin said they were not likely to benefit substantially if their earnings deteriorated in a weakening global economy. Taiwan's top chip designer Mediatek Inc was flat, after rising throughout most of the session. Credit Suisse raised its target share price and earnings forecasts on Mediatek, citing stronger chip demand for mobile phones in China.
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