twn stock 0422

14:32 23Apr09 RTRS-Taiwan stocks off 1-wk high, financials weigh * Market snaps 3-session winning streak, financials lead * AU rises before announcing Q1 loss * TSMC led tech shares higher on Apple's solid Q1 profit (Adds details and quotes) By Gina Chang TAIPEI, April 23 (Reuters) - Taiwan stocks fell 0.18 percent on Thursday, ending a three-day winning streak, as Wall Street losses reignited concerns over the world financial system, sending financial shares such as Cathay Financial <2882.tw> lower. The main TAIEX share index <.TWII> closed down 10.87 points at 5,875.24, retreating from a one-week closing high in the previous session. Turnover was active at T$130 billion ($3.8 billion), lower than Wednesday's T$135.5 billion. The financial sub-index <.TFNI> lost 1.95 percent, leading the day's decline and erasing a more than 31 percent rally since the beginning of March. Cathay Financial, the island's top listed financial holding firm and the second-most active share by turnover, slid 2.7 percent. "Financial shares might get a short-term boost when the MOU is signed, but will probably continue their pull-back after the recent rally," said Tu Jin-lung, chairman of Grand Cathay Investment Services. Top negotiators from Taiwan and China are set to meet on Saturday for a third round of talks that will pave the way for the signing of a memorandum of understanding (MOU) between the two sides in the near future. Sean Chen, chairman of the Financial Supervisory Commission, cautioned investors against expecting too much from the potential signing of the MOU because the agreement would mark only the first step of closer cooperation between the two sides, local media reported on Thursday. Market sentiment was also pressured by a 3 percent slide in China stocks on Wednesday and media reports that the IMF forecast Taiwan's gross domestic product to fall by 7.5 percent this year. "The sharp fall in China stocks yesterday weighed on local stocks today," said Eddy Chen, a vice president at National Investment Trust Co. "The market will be pressured in the short term as investors watch closely quarterly results by local companies." However, technology shares tapered the fall after Apple posted stronger-than-expected quarterly results. The electronic sub-index <.TELI> rose 0.43 percent while the semiconductor sub-index <.TSII> climbed 0.81 percent. TSMC <2330.tw> , the world's top contract chip maker, jumped 1.18 percent. LCD shares rose after a newspaper said flat panel prices would likely rise sharply in May. Shares of AU <2409.tw> and Chi Mei <3009.tw>, Taiwan's top two LCD makers, rose 2.47 percent and 3.24 percent, respectively. Minutes after the closing bell, AU Optronics reported its second quarterly loss in the first quarter. [nTPU001312] DRAM shares continued their rally on rising chip prices. Powerchip <5346.two>, Taiwan's No.1 DRAM maker, and smaller rivals Nanya Tech <2408.tw> and ProMOS <5387.two> all
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