Taiwan stocks tumble

25 Sep, 2009

Taiwan stocks fell 0.71 percent on Thursday to their lowest close in more than a week, with technology heavyweight TSMC leading losses as an overnight fall on Wall Street triggered a bout of profit-taking. The main TAIEX share index fell for the fourth straight session, closing down 52.54 points at 7,324.22, the lowest close since September 14.
"Investors were expecting a pull-back and have been keen to cash in their gains in technology and financial shares, and a slide on Wall Street sped up the process," said Eddy Chen, a vice president at the National Investment Trust Co Ltd. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the session's most active share by turnover, fell 2.41 percent, even after Merrill Lynch raised its target price and earnings forecasts on TSMC on hopes of steady growth in demand and low inventory.
Its smaller rival UMC, also the second most actively traded stock by volume, fell 1.62 percent, sending the semiconductor sub-index 1.22 percent lower. Smartphone maker HTC fell 0.69 percent. The electronics sub-index was down 0.67 percent. Turnover was light at T$90 billion ($2.8 billion), the lowest in nearly one month, as investors stayed cautious ahead of the central bank's rate-setting meeting later in the day.

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