Taiwan stocks plunge as tech shares dip

20 Jul, 2006

Taiwan stocks closed down 0.13 percent on Wednesday, as investors took quick profits from early gains in high priced technology shares such as HTC and Catcher Technology.
The main TAIEX stayed in positive territory for most of the day before losing ground in last-minute trade. The index edged down 8.07 points to 6,277.24, with the electronics sub-index falling 0.11 percent.
Turnover remained soft at T$64.19 billion ($1.95 billion). "Investors wanted to bank in on high priced stocks so the index was pulled down towards the end of trade," said Jih Sun Investment Consulting Manager Albert Lin.
Smartphone maker High Tech Computer Corp (HTC) dipped 0.36 percent to T$826.00 after advancing earlier in the session. The firm announced late on Tuesday that it would start selling mobile phones in Japan under its own brand.
Catcher Technology, which makes casings for laptop computers and mobile phones, fell 6.0 percent to T$305.50. The TAIEX should stay at around 6,200 to 6,450 points for the rest of July, Lin said.
Taiwan's Asustek Computer Inc, the world's top motherboard maker, defied the weakness and rose 1.35 percent on reports that it had won an order from Sony Corp to make 4 million PlayStation 3 game consoles. Sony plans to debut the new PS3 in November, the Commercial Times said.
Mega Financial, Taiwan's number three financial holding firm, fell 0.22 percent. The company said on Tuesday its earnings for the second half of this year would be flat from the first half.
Laptop computer battery maker Simplo Technology Co Ltd was one bright spot, gaining 3.95 percent after its chairman told Reuters in an interview on Tuesday that it expected third-quarter shipments to rise.

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