TW market 1117

14:01 17Nov2008 RTRS-Taiwan stocks fall as LCD makers slide, Hon Hai up

* Hon Hai up after it said it has billions of dollars
* LCD makers continue slide on weak outlook
* Cellphone component suppliers down after Nokia warning
* Department stores up as gov't considers consumer vouchers

(Adds details, quotes)
TAIPEI, Nov 17 (Reuters) - Taiwan stocks closed 0.29 percent
lower on Monday as LCD makers fell, but the index was supported
by electronics giant Hon Hai Precision Industry Co <2317.TW>
after it moved to allay fears about its cash position.
The main TAIEX share index <.TWII> fell 12.90 to close at
4,439.80, having fallen in and out of positive territory during
much of the session.
"We're seeing some tech companies doing quite badly today,
and that's the main reason why shares are down today," said
Theresa Chueh, an analyst at Taiwan International Securities.
"Consumer sentiment remains weak, and the TAIEX is very
tech-heavy, which is why I don't think we have hit a bottom and
could see the index fall below 4,100."
Turnover was low at T$43.8 billion ($1.32 billion), lower
than the average level on most November trading days, as cautious
investors waited for a clearer direction before plunging in.
Hon Hai, the day's most active issue by turnover, rose 1.67
percent after it said it had billions of dollars on hand.
Its gains came despite Nokia , one of its major
clients, saying it sees the world's mobile phone market declining
in 2009. [ID:nLE248399]
So far this year, the stock has lost two-thirds of its value,
while the benchmark TAIEX has nearly halved. [ID:nTP311710]
Other suppliers of cellphone components, however, fell, with
shares of Largan Precision <3008.TW>, which makes lenses used in
many camera-enabled cellphones, and Unimicron <3037.TW>, which
makes printed circuit board, both down by their 7 percent limit.
LCD makers led the day's losses, hit by a triple whammy of
weakening prices, dampened consumer demand and a guilty plea by
Chunghwa Pictures Tube (CPT) <2475.TW> to charges of a
price-fixing conspiracy.
AU Optronics <2409.TW>, the day's most active share by
volume, Chi Mei Optoelectronics <3009.TW> and CPT all fell by
their daily 7 percent down limit.
"The waters are going to be choppy for a while more," said
Kevin Chang, head of regional tech strategy at Yuanta Securities.
"While some may argue that it is obvious that companies are
going to give a weaker outlook, given the current climate, any
downward revision by a major vendor is still going to affect the
market."
On the bright side, department store shares got a boost from
a report that the Taiwan government would decide on Thursday on
measures to boost domestic consumption and ensure that GDP growth
in 2009 remains above 2 percent.
Plans to issue consumer vouchers pushed the department stores
sub-index <.TDEI> and the food sub-index <.TFII> up more than 5
percent.
The glass and ceramics sub-index <.TGLI> rose more than 6
percent on reports that large-scale public projects could be
brought forward.

--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.29 percent
Close on day 4,439.80
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
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