* Mediatek limit-down after cutting sales forecast
* Market ignores latest gov't move to boost share prices
* Tourism shares rise on hope of more Chinese tourists
(Adds details and quotes)
By Gina Chang
TAIPEI, Dec 5 (Reuters) - Taiwan stocks fell 0.7 percent on
Friday to a two-week closing low, as tech shares slid after
Mediatek cut its sales forecast, ignoring a government move
allowing Chinese institutional investors to buy local shares.
The main TAIEX <.TWII> ended down 29.89 points at 4,225.07,
dropping for a fourth session and bringing the week's decline to
5 percent. The electronics sub-index <.TELI> lost 0.86 percent.
Turnover was light at T$40 billion ($1.2 billion), lower than
T$53.7 billion a day earlier, ahead of the island's latest
consumer price index figures that were due later in the day.
Shares of chip designer Mediatek <2454.TW> shed 7 percent to
their daily limit after the company joined other semiconductor
firms in Taiwan in cutting its fourth-quarter sales forecast on
Thursday due to slower demand. [ID:nTP282105]
Earlier this week, top contract chip maker TSMC <2330.TW>
all slashed their sales forecasts for the current quarter.
"The market was pressured after technology companies lowered
their sales forecasts one after another," said Michael On, a
manager of Beyond Asset Management.
Taiwan Semiconductor Manufacturing Co (TSMC) rose 0.4 percent
and ASE finished flat. Siliconware declined 0.22 percent, while
the semiconductor sub-index <.TSII> fell 0.97 percent.
Shares of ProMOS Technology Inc <5387.TWO>, Taiwan's No.3
DRAM chip maker, went limit down even after the firm denied a
report that it would be forced to halt production. [ID:nTP150716]
The market failed to gain support from news that Taiwan's
Cabinet would open its local stock and futures markets to
qualified direct institutional investors (QDII) from China, in
its latest bid to prop up the stock market. [ID:nTP102286]
"The amount of investment that QDII will bring into Taiwan is
quite small. This measure won't help push the sagging stock
market up right now as the broader economy continues to weaken
and investors lack confidence," said John Chiu, vice president of
Fuh Hwa Securities Investment Trust.
One bright spot was the tourism sub-index <.THOI>, which
gained 1.52 percent after a local newspaper report that a Chinese
subsidiary of South Korea's LG Group said it would offer a
complimentary trip for 2,008 Chinese tourists to visit Taiwan.
HOT STOCKS
-- Acer <2353.TW>, the world's No. 3 PC vendor, declined 0.71
percent, despite a newspaper quoting Acer's chairman as saying
its laptop shipments could still grow by 15-25 percent in 2009 as
consumers seek to replace desktops with laptops.
Acer will start selling a smartphone in the first quarter of
next year, the paper said.
-- Taiwan Life Insurance Co Ltd <2833.TW> fell 0.97 percent
after Standard & Poor's Ratings Services lowered its financial
strength and counterparty ratings on the company to 'BBB' from
'BBB+'. [ID:nWLA2918]
Wan Hai Lines Ltd <2615.TW> lost 3.17 percent after Standard
& Poor's Ratings Services lowered its corporate credit rating on
the firm to 'BB+' from 'BBB-'. [ID:nWNA0948]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.7 percent
Close on day 4,225.07
2008 intraday high 9,309.95
2008 intraday low 3,955.43
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$=T$33.5)
(Reporting by Gina Chang; Editing by Ken Wills)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
ASIA-PACIFIC
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