TW market 1120

14:28 20Nov2008 RTRS-Taiwan stocks at 6-yr closing low despite govt aid

* Financials fall amid weakening economic outlook
* Taishin reverses gains even after talk of $100 mln boost
* LCD makers fall after Corning warning

(Adds details, quotes)
By Kelvin Soh
TAIPEI, Nov 20 (Reuters) - Taiwan stocks finished down 4.53
percent at a more than six-year closing low on Thursday as
financials such as Yuanta Financial <2885.TW> slid, even as the
government announced a slew of measures to help the economy.
The main TAIEX share index <.TWII> ended 194.16 points lower
at 4,089.93, a closing level not seen since October 2002 and a
new 52-week intraday low. Yuanta Financial closed 7 percent
lower.
Turnover was thin at T$45 billion ($1.34 billion) as
investors stayed away from the falling market and waited for
clearer direction.
"I'm not very optimistic now, and see the TAIEX dropping to
about 3,800," said Michael On, managing director of Beyond Asset
Management.
"I think all eyes are on the GDP figures and if that falls,
it's going to drag the market down with it."
Many economists expect the government to report after the
market closes that Taiwan's GDP growth in the third quarter fell
to its slowest pace in five years.
Financials led the day's losses, with the banking and
insurance sub-index <.TFNI> closing 5.82 percent lower on fears
that weak economic growth would hit the overall financial
industry.
Leading financial holding companies Shin Kong Financial
<2888.TW>, Cathay Financial <2882.TW> and Fubon Financial
<2881.TW> all closed more than 6 percent lower.
Taishin Financial <2887.TW>, which the day before had risen
by its daily 7 percent limit on local media reports that a
Chinese bank would invest $100 million in the company, also
joined in the free-fall to close 1.11 percent down.
"It feels like we're destined to set a new low soon," said
Andrew Teng, an analyst at Taiwan International Securities.
"The overall atmosphere is really bad and we're looking at
all the heavyweights going down as well. There's no major push
factor for the market to climb."
Taiwan's tech firms also joined in the downward spiral, with
the semiconductor sub-index <.TSII> down 4.48 percent after
research firm iSuppli said global semiconductor revenue was
likely to fall 2 percent this year. [ID:nSEO354566]
Tech bellwether and top contract chip maker TSMC <2330.TW>
closed 3.16 percent lower, while its smaller rival UMC <2303.TW>
fell by the daily limit of 7 percent.
Taiwan's tech industry produces much of the world's
electronics, including more than half of all laptop PCs, and has
been badly hit by slumping consumer demand amid the global
economic crisis.
LCD makers reversed Wednesday's gains as global specialty
glass maker Corning , which makes glass for LCD
televisions and computers, said demand had slowed more than
anticipated. [ID:nN183315]
Top LCD maker AU Optronics <2409.TW> was down 4.64 percent,
while its smaller rival Chi Mei Optoelectronics <3009.TW> shed
5.85 percent.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -4.53 percent
Close on day 4,089.93
2008 intraday high 9,309.95
2008 intraday low 4,089.93
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 Jonathan Hopfner)
((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]
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Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/]
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Thursday, 20 November 2008 14:28:11RTRS [nTP329102] {EN}ENDS