Taiwan stocks fell 0.18 percent on Friday, after three sessions of gains, as shares of high-priced technology issues like chip designer Mediatek declined on slowing demand for mobile phones. The main TAIEX share index slipped 16.09 points to end at 9,074.34, after hitting a 5-month high on Thursday.
Shares worth T$180.61 billion ($6 billion) changed hands, less active than T$239.78 billion in the previous session, reflecting a cautious mood before a series of quarterly earnings from Taiwan technology firms due out next week. The electronics sub-index declined 0.76 percent and the banking and insurance sub-index lost 0.14 percent.
"Expensive stocks got hit today as continued uncertainty in the market caused investors to unload them, and we're expecting the market to trade between 8,800-9,200 points next week," said Kevin Chung, an analyst from Jih Sun Investment Consulting.
Shares of Mediatek, which supplies chips for mobile phones and digital TVs, slumped 5.82 percent as the most active stock by turnover, while smartphone maker High Tech Computer (HTC), another high-priced stock, dipped 3.82 percent.
Mediatek was downgraded by J.P. Morgan to "neutral" from "overweight", citing that slower demand from its major client Nokia could affect its second quarter growth. Financial stocks reversed course from earlier gains as Cathay Financial declined 0.6 percent, but traditional industry issues were up as Highwealth Construction jumped 4.39 percent. The construction sub-index rose 1.47 percent.
Shares of top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) fell 0.45 percent, after the Economic Daily reported that TSMC's VTAF unit has invested $40 million in US LED maker BridgeLux, giving it entry into the epitaxy process used by BridgeLux.
Compal Electronics fell 1.67 percent even after the Commercial Times reported the laptop computer maker won orders from Dell for 1 million more notebook PCs, bringing it closer to its target of shipping 32 million units this year.
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