* Construction down despite public spending plan
* Contract PC makers down even as HP posts strong results
* LCD makers break losing streak after four days of losses
* Taishin limit up on talk of $100 mln boost by China bank
(Adds details, quotes)
By Kelvin Soh
TAIPEI, Nov 19 (Reuters) - Taiwan stocks fell 0.49 percent to
a fresh five-year closing low on Wednesday, with construction
companies such as Huaku <2548.TW> down even after the government
said on Tuesday it would boost public spending.
The main TAIEX share index <.TWII> closed 21.09 points lower
at 4,284.09, a closing level not seen since May 2003. The
construction sub-index <.TCOI> was 2.21 percent lower as Huaku
Development shares slid 6.1 percent.
Turnover was thin at T$48.9 billion ($1.47 billion), similar
to Tuesday, as wary investors stood aside and waited for clearer
guidance before stepping in.
"Government spending is not going to affect developers and
other related companies," said Jack Chang, an analyst at Yuanta
Sec. "Most of their money still comes from real estate, and for
as long as that remains weak, we're not going to see any climb."
Other construction-related companies took a beating, with the
cement sub-index <.TCMI> down 0.53 percent and the steel and iron
sub-index <.TSTI> down 3.37 percent.
"Chinese investments in Taiwan projects may boost the
industry somewhat, but things are not going to get better before
the second half of 2009," Chang said.
Tech shares also slid, including contract laptop PC maker
Compal Electronics <2324.TW>, even after Hewlett-Packard
announced forecast-beating quarterly results.
Taiwan produces much of the world's electronics, including
more than half of all the world's laptop PCs, and many investors
look closely at guidance from top tech vendors when looking to
buy the island's technology shares.
Compal closed more than 6 percent lower as investors chose
instead to focus on weak consumer demand amid the global
financial crisis.
"Although it seems like tech shares are going to fall for a
few more days, there seems to be some sense that there is some
form of a stability returning when you look at shares such as Hon
Hai," said Theresa Chueh, an analyst at Taiwan International Sec.
Hon Hai <2317.TW>, a top electronics parts maker, closed 2.11
percent higher.
LCD makers, which have been reeling on falling prices and
dampened demand for their products, snapped their losing streak
after four consecutive sessions of declines, with the
optoelectronics sub-index <.TOPI> up 3.13 percent.
AU Optronics <2409.TW> was up 6 percent, while smaller rival
Chi Mei Optoelectronics <3009.TW> surged by its daily 7 percent
limit.
Financials also bucked the falling trend, with the banking
and insurance sub-index <.TFNI> climbing 1.14 percent, after
local media reported that China's Bank of Communications
<3328.HK> was thinking of investing $100 million in Taishin
Financial <2887.TW>.
Taishin Financial, the session's second most active issue by
volume, surged to go limit up moments after the market opened and
remained there for the rest of the session.
Other financial stocks also climbed, with shares of leading
financial holding companies Cathay Financial <2882.TW> and Shin
Kong Financial <2888.TW> up about 2.56 percent and 3.08 percent,
respectively.
STOCKS TO WATCH
-- Gintech Energy <3514.TW> closed 3.49 percent down after it
said on Tuesday it would delay construction of a solar plant by
one year due to slowing demand caused by the global economic
slowdown.
Sino-American Silicon Products <5483.TWO> closed 1.79 percent
lower even after saying that it will boost capacity by 40-50
percent next year, amid booming demand for alternative energy.
-- Powerchip <5346.TWO>, Taiwan's top DRAM chip maker,
climbed 2.77 percent after six days of losses after it said it
would not require government assistance to weather the current
downturn.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.49 percent
Close on day 4,284.09
2008 intraday high 9,309.95
2008 intraday low 4,110.09
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Reporting by Kelvin Soh, Editing by Keiron Henderson)
((kelvin.soh@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:kelvin.soh.reuters.com@reuters.net))
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Wednesday, 19 November 2008 14:31:13RTRS [nTP326406] {EN}ENDS
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