* Taiwan stocks fall as govt says to cut 2009 growth target
* Thinnest turnover in four years
* Main index at fresh 5-yr low
(Adds quotes, details)
By Kelvin Soh and Gina Chang
TAIPEI, Oct 23 (Reuters) - Taiwan stocks closed down 2.72
percent on Thursday at a fresh five-year closing low, with
investors offloading shares across the board a day after the
government said it would lower the 2009 economic growth forecast.
The main TAIEX share index <.TWII> closed 132.08 points lower
at 4,730.51 after touching its lowest point since June 2003.
Turnover shrank to T$25.727 billion ($770 million), the
lowest at least since August 2004, exchange data showed.
The market was prevented from matching the more drastic falls
seen on Wall Street's major indexes overnight and on other Asian
markets due to a temporary rule that halves the down limit of
individual stocks to 3.5 percent. The government has said the
measure will end this Friday.
"Because of the trading limit and the more drastic falls
we've seen in other Asian markets, unless there's a huge
overnight jump on Wall Street, Taiwan stocks should continue
their fall tomorrow," said Alex Huang of Mega International
Securities.
Many of the island's blue chips were badly hit. Hon Hai
<2317.TW>, Taiwan's top electronic parts maker, went limit-down
for a fourth consecutive day ahead of its third-quarter earnings
results, which it must release by the end of the month.
Fears of slowing consumer demand for products sold by Hon
Hai's clients heading into the holiday shopping season also drove
investors away from the company.
Other technology shares that dived included smartphone maker
HTC Corp <2498.TW>, PC makers Acer <2353.TW> and Asustek
<2357.TW>, and contract notebook maker Compal Electronics
<2324.TW>, all fell by their 3.5 percent daily limit.
Tech bellwether TSMC <2330.TW> also joined in the freefall to
close limit down despite Japanese media reports that Renesas
Technology Corp would outsource some of its chip production to
them. [ID:nT25388]
Local newspaper reports that Quanta Computer <2382.TW> would
be the contract manufacturer for Apple's
mini notebook computer also failed to prop up the company's
shares. Quanta, the biggest contract manufacturer of notebook
PCs, also closed lower by its daily maximum limit.
"While this is good news for the company, it won't have a big
effect on the bottom line because of how big the company is,"
said Vincent Chen, head of downstream tech at Yuanta Core
Pacifici Securities.
Financial shares were also affected by the market's fall.
Shin Kong Financial <2888.TW>, which had said a day earlier that
it would be receiving T$8 billion from Japan's Dai-ichi Life
Insurance, reversed the previous day's gains to end limit down.
Fubon Financial <2881.TW> and Cathay Financial <2882.TW>
closed limit down. Taishin Financial <2887.TW> lost 2.25 percent.
All of the TAIEX's sub-indexes that measure performance by
industries fell, with the electronics sub-index <.TELI> losing
2.84 percent. The semiconductor <.TSII> and the banking and
insurance sub-indexes <.TFNI> both fell more than 3 percent.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -2.72 percent
Close on day 4,730.51
2008 intraday high 9,309.95
2008 intraday low 4,706.13
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Editing by Keiron Henderson)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS]
S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW]
Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS:
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Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/]
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Thursday, 23 October 2008 14:39:08RTRS [nTP3375] {EN}ENDS
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