TAIPEI, July 19 (Reuters) – Taiwan stocks fell 0.19 percent
on Monday as a sharp decline on Wall Street triggered selling of
exporters including Hon Hai (2317.TW), and as investors awaited
more quarterly earnings from technology companies.
The broader electronics sub-index .TELI fell 0.09 percent
and the financial sub-index .TFNI lost 0.7 percent. However,
the tourism sector .THOI rose 1.3 percent on hopes more Chinese
tourists would visit Taiwan.
Major U.S. indexes shed more than 2 percent on Friday on
dismal consumer sentiment and anemic revenue reports from General
Electric Co (GE.N) and two big banks. [.N] More technology
companies in the United States and Taiwan are set to report
quarterly results later this month.
“The market had risen from early July and that reflected very
good June sales figures from many technology companies, but it
looks like their business in the third quarter won’t be as good
as in the second quarter,” said Andrew Deng, analyst at Taiwan
“Some tourism shares rose today but they are small cap shares
and their gains were not enough to push the market back to
Hon Hai Precision Industry Co, the island’s top electronics
parts maker and assembler of computers for top U.S. brands, lost
1.24 percent. PC vendor Acer Inc (2353.TW) slid 1.1 percent and
LCD maker AU Optronics Corp (2409.TW) (AUO.N) fell 2.2 percent.
Their losses pulled the main TAIEX share index down
14.74 points to close at 7,649.83.
Cheng Uei Precision Industry Co (2392.TW) rose 2.7 percent
after a local newspaper report that Intel Corp (INTC.O) was
interested in taking a stake in the components maker.
In a statement to the Taiwan stock exchange on Monday, Cheng
Uei denied the report, saying it was not in talks with any
companies on a stake sale.
Top contract chipmaker TSMC (2330.TW) (TSM.N) rose 2 percent
after announcing a plan to build a new plant on Friday.
Despite the day’s losses, financials could regain momentum to
lead the Taipei market higher, said Robert Huang, a vice
president and trader at the proprietary trading department of
“There’s still a chance the market will go up again because
of financial shares,” Huang said, referring to financial firms’
long-term potential gains on the mainland after China and Taiwan
signed a landmark trade deal in late June.
Huang did not rule out the TAIEX testing about 7,800 points
Foreign investors bought Taiwan shares worth a net T$4.62
billion ($144 million) on Friday, expanding their total purchases
so far this month to T$26.85 billion. [ID:nTOE65305E]