* Market changes course to finish lower on profit-taking
* Financial and steel stocks lead the decline
* UMC rises on better outlook
* Hon Hai up after giving upbeat sales target
* Market turnover highest in one year
(Adds details and quote)
By Gina Chang
TAIPEI, April 17 (Reuters) - Taiwan stocks closed down 4.03
percent on Friday in active trade, their biggest one-day decline
in three months, as investors locked in profits after a recent
rally that pushed the market to a seven-month high.
Top drags included financial shares, which had risen sharply
in recent weeks as investors bet the potential signing of a
financial supervision agreement with China later this year would
improve business.
The main TAIEX share index <.TWII> finished down 241.79
points at 5,755.38, giving up early gains to post its weakest
close this week, during which the index ended 0.5 percent lower.
The day's fall was the largest percentage drop since Jan. 15.
Turnover was hefty at a one-year high of T$223.7 billion
($6.6 billion), sharply higher than Thursday's T$173 billion.
"The market has risen a lot. Besides, there was increasing
pressure after the market reached the 6,000-point level (on
Thursday and Friday)," said John Chiu, vice president of Fuh-Hwa
Securities Investment Trust.
The banking and insurance sub-index <.TFNI> lost 5.93
percent, with Cathay Financial <2882.TW>, the island's
largest-listed financial holding firm, down 6.05 percent.
Shares of Shin Kong Financial <2888.TW> fell by their 7
percent daily limit as its unit, Shin Kong Life, was fined by
Taiwan regulators after the company used inappropriate means to
sell its products. [ID:nTP5319]
Financial shares have risen 32 percent since the beginning of
March, outpacing a 25 percent rise on the broader market.
The day's biggest loser was the steel and iron sub-index
<.TSTI>, which shed 6.92 percent after a 10 percent rise over the
previous four sessions.
Some analysts said the market would trade in a tight range in
the short term, but expected it to resume an upward trend with
closer trade ties with China.
However, some tech giants held on to their gains during the
session on an improving sector outlook.
UMC <2303.TW>
rose 3.77 percent, partly because investors expected the company
to gradually recover from the first quarter. [nTP52559]
Hon Hai <2317.TW>, Taiwan's top electronics parts maker,
edged up 0.45 percent after saying it was targeting a 30 percent
rise in sales this year, better than analyst expectations, as it
bets on growth of some new electronics products. [nTP310907]
Nanya Tech <2408.TW>, Taiwan's No.2 DRAM maker, gave up early
gains to finish down 6.49 percent.
On Thursday, the company said it had talked to clients to
raise the contract price of its chips by 10 percent later this
month. [ID:nTP253476]
The semiconductor sub-index <.TSII> fell 2.34 percent while
the electronics sub-index <.TELI> shed 3.33 percent.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -4.03 percent
Close on day 5,755.38
2009 intraday high 6,071.06
2009 intraday low 4,164.19
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$33.8)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.com@reuters.com))
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