TWN stock 0110

16:25 10Jan2009 RTRS-Taiwan stocks hit 2-wk low, T$ falls in weekend trade

(Adds closing prices, quotes)
TAIPEI, Jan 10 (Reuters) - Taiwan stocks fell 0.78 percent to
a two-week closing low on Saturday after the top financial
regulator decided to stick with a controversial new accounting
rule, while the Taiwan dollar ended slightly weaker.
The main TAIEX share index <.TWII> slid 35.21 points to
4,467.53 points, with Asustek Computer <2357.TW> pulling the
electronics sub-index <.TELI> 0.6 percent lower.
Taiwan's financial markets opened on Saturday to offset an
extra holiday over the New Year weekend.
The Taiwan dollar closed at T$33.160 to the U.S.
dollar, inching down from Friday's close of T$33.155, with
falling stocks pressuring the currency, though exporters selling
the U.S. currency provided some support.
Earnings concerns weighed on stocks after regulators on
Friday said they would keep a new rule tightening the booking of
inventories in company accounts. [ID:nTP352076]
"Investors were worried the new rule would hurt Asustek and
others with high inventories," said Eddie Chen, a vice president
at National Investment Trust. "There were mounting concerns
Asustek's rivals were also in a tough situation."
Asustek, the world's top motherboard maker, fell 2.7 percent
as it said after the market closed on Friday that its December
sales were down 20 percent. [ID:nTP70596]
Contract chipmaker TSMC <2330.TW> closed unchanged even
though its December sales dropped 55 percent from a year earlier
to its lowest level in almost six years. [ID:nTP98053].
Adding to the dismal outlook in the tech industry, laptop
maker Compal <2324.TW>, whose shares ended flat, said after the
markets closed that its shipments this year could be up to 8.6
percent lower than its previous target. [ID:nTP82604]
The financial sub-index <.TFNI> dropped 1.39 percent as
Taishin <2887.TW> and several other financial firms were singled
out by the cabinet as conducting possible questionable deals
during a sector reform several years ago.
Taishin's stock fell 3.74 percent, while China Development
Financial <2883.TW>, another firm identified by the cabinet,
declined 1.38 percent. Officials of both firms were not
immediately available for comment. [ID:nTP73548]
Volumes were thin in the stock and forex markets as regional
markets were closed.
"Some foreign institutions conducted outflows, but frankly,
there weren't many people trading today," said a forex dealer.
Better-than-expected U.S. jobs data