TW market 0112

14:16 12Jan2009 RTRS-Taiwan stocks at 2-week closing low, Compal falls

* Market drops for a third day to two-week closing low
* Compal Elec down on lowered 2009 laptop shipment outlook
* Cathay Financial falls after posting Q4 loss

(Adds details and quote)
TAIPEI, Jan 12 (Reuters) - Taiwan stocks fell 0.31 percent on
Monday to a fresh two-week closing low, with Compal <2324.TW>
dropping on a weaker 2009 shipment outlook and investors turning
cautious before major U.S. firms post earnings results.
The main TAIEX share index <.TWII> closed down 13.63 points at
4,453.90, its weakest finish since Dec. 29. Turnover was thin at
T$55.9 billion ($1.7 billion), but up from T$43 billion in the
previous session.
"Trading volume was light. Both stock buying and selling have
become less active ahead of earnings results by major U.S. firms
this week," said Nigel Lee, a portfolio manager of National
Investment Trust.
"However, unless there comes any surprising bad news from the
U.S., Taiwan's market will trade in a tight range."
Lee expected the market to trade between 4,350-4,600 points
this week as investors were reluctant to trade before the market
closes for Lunar New Year holidays from Jan. 22 through Feb. 1.
Compal Electronics, the world's second-largest contract
laptop maker, fell 0.62 percent after saying on Saturday its
shipments this year could be 8.6 percent below its previous
target due to the global slowdown. [ID:nTP82604]
Quanta Computer <2382.TW>, Compal's larger rival, lost 3.54
percent.
The electronics sub-index <.TELI> inched up 0.06 percent,
with Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's top contract chip maker, 1.59 percent
higher.
Shares of AU Optronics <2409.TW>, the world's No. 3 flat
panel maker, fell 4.82 percent and smaller rival Chi Mei
<3009.TW> ended flat.
Some LCD makers are having trouble finding workers after a
surge in orders in December, as recently laid-off employees opt
to remain on unemployment rather than risk going back to work
only to be laid off again, a newspaper reported on Monday.
The market fell on Saturday after the top financial regulator
decided to stick with the new accounting rule. Most analysts said
a delay in the new rule would provide little help for companies,
if demand for their products remains weak.
A newspaper said on Monday the government was studying
possible amendments to a new inventory-related accounting rule
that has raised concerns among the business community.
The financial sub-index <.TFNI> was down 1.87 percent,
dragged by Cathay Financial <2882.TW>, Taiwan's top listed
financial holding firm, which lost 2.16 percent.
Cathay Financial posted on Saturday a net loss of T$1.37
billion in the fourth quarter and finished 2008 with its lowest
profit since 2001. [ID:nTP332687]

------------------------------------------------------------
Move on day -0.31 percent
Close on day 4,453.90
2009 intraday high 4,817.44
2009 intraday low 4,431.04
All time high 12,682.41 12 FEB 1990
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For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.2)
(Reporting by Gina Chang, Editing by Jacqueline Wong)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
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