twn stock 0115

14:33 15Jan2009 DJ Taiwan Shares End Down 4.4% At More-Than-5-Wk Low On US Slump

DJ Taiwan Shares End Down 4.4% At More-Than-5-Wk Low On US Slump

TAIPEI (Dow Jones)--A slump in U.S. stock markets overnight on worse-than-expected economic data and concerns about the worsening financial crisis, dragged the Taiwan index to its lowest closing level in more than five weeks Thursday.
The Weighted Price Index of the Taiwan Stock Exchange fell 200.70 points, or 4.4%, to 4320.77. It was the index's lowest since it settled at 4278.61 on Dec. 8, 2008.
Turnover totaled NT$54.20 billion, down from the previous session's NT$60.95 billion.
There were 1,532 decliners, 134 gainers, and 85 closed unchanged.
Traders said they expect the main index to continue declining Friday and Saturday, and pegged support at 4180.
The Taiex "will still decline for the rest of the week unless U.S. shares make a strong rebound," said Mega International Investment Service trader Stanley Chou.
The domestic stock market will be open on Saturday to compensate for its closure Jan. 30 due to a public holiday.
"There's still Intel's earnings tonight. If it's worse than its guidance, we can expect another round of losses in shares," said Daiwa Securities SMBC-Cathay Co. fund manager David Li.
A 2.9% fall in the bellwether Dow Jones Industrial Average overnight due to poor December retail sales data and a 23% plunge in Citigroup on the bank's decision to sell a majority stake in its Smith Barney retail brokerage weighed on the Taiex. The decline was the DJIA's biggest point and percentage drop since Dec. 1, 2008.
Taiwan's financial sub-index ended down 6.0% after major creditor banks said they agreed to roll over loans for debt-laden, unprofitable ProMOS Technologies.
Taiwan Cooperative, ProMOS's second-largest creditor bank, fell 4.2% to NT$15 after Vice President John Chou said the bank agreed on Jan. 9 to extend the company's loan repayment schedule by a year. Taiwan Cooperative's loans to ProMOS total around NT$8 billion.
ProMOS, which has slightly over NT$56.5 billion in outstanding loans, fell by the maximum 6.9% daily trading limit to NT$1.88, after the Economic Daily News reported Thursday the Taiwan government isn't likely to inject funds, and creditor banks aren't likely to increase loans.
"Without money from the government and banks, ProMOS may file for bankruptcy soon," says Taiwan International Securities analyst Michael Chen.
Technology shares ended 4.2% lower on negative developments in the U.S.,