Taiwan stocks plunge as high-price techs fall

Taiwan stocks fell 0.21 percent on Thursday as investors took advantage of Wall Street gains to cash in on recent profits, with high-price tech issues such as chip designer Mediatek Inc surrendering earlier gains.
The main TAIEX ended down 12.36 points at 5,858.01, after surging 4.2 percent in the previous three days. Soft turnover of T$76.6 billion ($2.28 billion) showed that investors had left the market after the recent run-ups.
"It's reasonable to see the market losing momentum after rises in recent trading and we think some outperformers in the tech sector need a rest for a few days," said Roger Lin, deputy manager at Pacific Securities. The bellwether tech sub-index inched up 0.06 percent. While high-price stocks weakened, funds flowed to display screen and microchip companies with improving fundamentals. The financial sector was off 0.51 percent.
Mediatek, the world's largest designer of DVD chips, was the second most active stock by turnover, falling 1.93 percent. The company forecast on Wednesday fourth-quarter revenue would rise 10 percent from the third quarter as it wins new business with mobile phone chips.
Selling spread to other high-price stocks. For example, smartphone maker High Tech Computer Corp lost 1.75 percent and Catcher Technology Co Ltd, which makes laptop cases, shed 4.19 percent.
Chi Mei Optoelectronics Corp, Taiwan's second-largest maker of thin displays, gained 0.44 percent. Chi Mei had on Monday posted a better-than-expected third-quarter profit and it will give guidance for the fourth quarter at an investor conference later on Thursday.
Display screen maker Chunghwa Picture Tubes Ltd was the second most active issue by volume, up 2.94 percent after the firm said on Wednesday it expects fourth-quarter shipments to grow by a double-digit percentage from the third quarter and sees screen prices stabilising.
Smaller rival Quanta Display Inc surged 6.72 percent on a local media report that the firm is expected to start making panels for LCD TVs for Japan's Sharp Corp next year, with initial output of about 70,000 to 80,000 units in the first quarter of 2006.
On a sour note, Chinatrust Financial Holding Co, Taiwan's sixth-largest financial holding firm, slid 2.59 percent after lowering its earnings growth forecast for this year.