Taiwanese exporters' stocks, paced by Hon Hai Precision Industry Co (鴻海精密), declined on concern that the US will enter a recession, hurting demand for Asian exports.
Farglory Land Development Co (
"The prospect of a recession in the US has devastated the outlooks for exporters," said Sam Hsieh (謝良武), who helps oversee US$2.7 billion at Fuh-Hwa Investment Trust Co (復華投信) in Taipei. "Investors can turn to domestic sectors with positive news such as property companies to park their money."
The TAIEX index slipped 74.45, or 0.9 percent, to 8,110.20, extending losses this year to 4.7 percent. About four stocks dropped for every three that rose. Stock futures due in February fell 1.3 percent to 8,110.
Hon Hai, Taiwan's biggest electronics exporter, fell NT$3, or 1.7 percent, to NT$171.50. Taiwan Semiconductor Manufacturing Co (
US stocks declined on Friday, sending the Standard & Poor's 500 Index to its biggest weekly loss in five years as investors judged that US President George W. Bush's economic stimulus plan would fail to prevent a recession. Bush on Friday called for a US$150 billion package that offers corporate investment incentives and personal tax rebates.
The US is Taiwan's largest export market after China.
Farglory, Taiwan's biggest construction company by market value, rose NT$5.90, or the daily 7 percent limit, to NT$90.90. Cathay Real Estate Development Co (國泰建設), Taiwan's second-biggest, advanced NT$1.25, also the daily maximum, to NT$19.40.
A measure of 32 construction-related companies jumped 4.2 percent, the most among 28 industrial groups in the broader index.
Taiwan will relax restrictions on Chinese investment in the real estate market, the China Times reported yesterday, without citing sources. Taiwan could loosen rules on Chinese nationals buying property as early as before the Lunar New Year holiday next month, the newspaper reported.
High Tech Computer Corp (
The company sold 2 million touch-screen mobile phones, more than 1.8 million it forecast for last year, the Commercial Times said, citing company president Peter Chou (
Yulon Motor Co (裕隆汽車), which builds cars for Japan's Nissan Motor Co and General Motors Corp, climbed NT$0.95, or 2.4 percent, to NT$39.85. Yulon plans to start selling vehicles bearing its own brand in Taiwan, the Commercial Times reported.
The company has spent NT$10 billion (US$309 million) and may set up a new company for the branded business, it said.
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