TWN stock 0109

14:25 09Jan2009 RTRS-Taiwan stocks end at 2-wk low; TSMC, Asustek drop

* Market extends loss from worst day in 2 mths on Thursday
* TSMC down after December sales results
* Asustek limit down on worse-than-expected sales drop
* UMC slides on worst monthly sales decline in 7 years

(Adds quotes, details)
By Gina Chang
TAIPEI, Jan 9 (Reuters) - Taiwan stocks fell 0.73 percent to
close at its lowest level in nearly two weeks on Friday, as tech
shares slid due to a string of dismal results by bellwether TSMC
<2330.TW> and PC vendor Asustek <2357.TW>.
The main TAIEX share index <.TWII> finished 33.05 points
lower at 4,502.74, its weakest close since Dec. 29, extending
Thursday's 5 percent fall which was the biggest single-day drop
in two months.
The heavily-weighted electronics sub-index <.TELI> fell 0.97
percent, with Taiwan Semiconductor Manufacturing Co (TSMC)
, the world's top contract chip maker, 1.32 percent lower.
Minutes after the market closed, TSMC posted a 55 percent
annual fall in December sales. [ID:nTPU001024]
Asustek Computer, the world's top motherboard maker, fell by
the daily maximum of 7 percent.
"Asustek's profit warning dragged down major tech shares such
as Acer and Hon Hai," said Eddy Chen, a vice president of
National Investment Trust.
"But Asustek is a healthy company, and people had already
expected the sector downturn to hurt profits," he said.
Asustek said late on Thursday its fourth-quarter motherboard
shipments likely fell more than its previous forecasts.
[ID:nTP83307]
Rivals of Asustek also ended lower. Acer <2353.TW> was down
5.92 percent. Hon Hai <2317.TW>, Taiwan's top electronics gear
maker and the most active share by turnover, lost 4.68 percent.
The market would trade in a narrow range in the next two
weeks, with the benchmark index between 4,300 and 4,700 points,
said John Chiu, a vice president at Fuh Hwa Securities Investment
Trust.
Many companies with high inventories such as Asustek were
also pressured by a new accounting rule that would tighten the
booking of inventories, prompting Taiwan's presidential office to
issue a statement late on Thursday that said the new rule should
be put into effect at a later date. [ID:nTP77137]
However, analysts said the new rule should not be delayed as
volatile policies may hurt investor confidence and the change
would likely provide little help for businesses if the economy
keeps worsening.
TSMC's crosstown rival United Microelectronics Corp (UMC)
<2303.TW> slid 1.74 percent, after it posted a 45.5
percent drop in December sales, its biggest decline in nearly
seven years. [ID:nTP83686]
The financial sub-index <.TFNI> lost 1.64 percent, with
Cathay Financial <2882.TW>, the island's top listed financial
holding firm, down 0.43 percent.
Investor worries mounted that banks might suffer losses as
many companies could default on their bank loans after the Lunar
New Year, analysts said.
Taiwan's stock market will be closed for the Lunar New Year
holidays from Jan. 22 to Feb. 1.

HOT STOCKS
- First Financial <2892.TW>, Taiwan's No. 6 financial holding
firm, fell 0.31 percent after the firm said on Thursday it
expects its banking arm's pre-tax profit to grow in 2009 by less
than half its recent pace due to a slowing global economy.
[ID:nTP86470]
-- Chinatrust Financial <2891.TW>, the island's top credit
card issuer, shed 5.04 percent after saying on Thursday it posted
a pre-tax loss of T$541 million in December. (For details of
Taiwan corporate results, click [ID:nTP226989])
------------------------------------------------------------
Move on day -0.73 percent
Close on day 4,502.74
2009 intraday high 4,817.44
2009 intraday low 4,472.45
All time high 12,682.41 12 FEB 1990
-------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(US$1=T$33.1)
(Editing by Jacqueline Wong)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.come@reuters.com))
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