TWN stock market 0108

14:16 08Jan2009 RTRS-Taiwan stocks post worst drop in 2-mths on exports

* Market hits 2-wk closing low on record export slump
* TSMC drops after Intel's revenue warning
* ProMOS falls despite submitting aid proposal with Elpida

(Adds details and quote)
TAIPEI, Jan 8 (Reuters) - Taiwan stocks fell 5.3 percent on
Thursday, its biggest single-day drop in two months, after
exports sank at a record pace in December, while chipmaker TSMC
<2330.TW> fell on a revenue warning from Intel Corp .
The main TAIEX <.TWII> share index ended down 254.05 points
at 4,535.79, posting its largest one-day percentage decline since
Nov. 6, 2008. The market also hit its lowest finish since Dec.
29, 2008.
The fall was further weighed down by losses on Wall Street,
ending TAIEX's five session winning streak during which it jumped
about 8.5 percent.
The electronics sub-index <.TELI> dropped 5.53 percent as
Taiwan posted a 42 percent fall in December exports after the
market closed on Wednesday, prompting the island's central bank
to cut interest rates by 50 basis points. [ID:nTP4588]
Turnover was light at T$76.3 billion ($2.3 billion), down
from Wednesday's T$96.7 billion.
"The fall in exports was worse than expectations, and hit the
market hard today," said Michael On, a managing director of
Beyond Asset Management.
Analysts said exports would likely drop further this month,
as working days were shortened due to Lunar New Year holidays.
"I think the central bank's rate cut will only have limited
effects on exports, if demand remains sluggish," said On.
After an emergency meeting on Wednesday, the central bank
announced it lowered the benchmark discount rate to 1.50 percent,
the lowest level since September 2004.
The semiconductor <.TSII> sub-index dropped 6.12 percent,
while TSMC slid 6.73 percent after microchip maker Intel Corp on
Wednesday issued its second revenue warning on the fourth quarter
due to weaker-than-expected demand. [ID:nN07475140]
UMC <2303.TW> , which ended flat, announced after the
stock market closed that its December sales fell by a sharp 45.5
percent from a year earlier.
PC maker Asustek <2357.TW> fell by its 7 percent daily limit
after posting a 55 percent yearly drop in December sales.
[ID:nTP226989]
However, a local newspaper reported on Thursday that Asustek
said it would focus its efforts on the low-cost segment of the
market and would launch a low-cost mobile phone in March.
ProMOS <5387.TWO>, the island's No.3 DRAM chipmaker, fell
5.33 percent even after the firm and Japan's Elpida <6665.T> had
jointly submitted a proposal for state assistance. [ID:nTP354739]
Shares of struggling DRAM makers were further weighed by a
research firm iSuppli note that said global sales of DRAM chips
were expected to fall 4 percent in 2009, extending their decline
for the third straight year. [ID:nSEO84566]
Powerchip <5346.TWO>, Taiwan's top DRAM maker, lost 5.87
percent and smaller rival Nanya Technology <2408.TW> ended limit
down.
First Financial <2892.TW> dropped 6.4 percent after a
newspaper said the finance ministry told the firm it wants 13 of
the company's 15 board seats so that it can lead consolidation
within the industry.
The financial sub-index <.TFNI> slumped 6.38 percent, with
Cathay Financial <2882.TW>, the island's largest listed financial
holding firm, ending limit down.
------------------------------------------------------------
Move on day -5.3 percent
Close on day 4,535.79
2009 intraday high 4,817.44
2009 intraday low 4,532.74
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)
(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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