twn stock/ 32.893 / 1041 / -6.78

14:21 12May09 RTRS-Taiwan stocks mark largest daily pct fall in 3 wks * Market ends eight-session winning streak * Financial, tourism plays weaken after recent rally * Hon Hai limit-down after April sales declines (Adds details and quotes) By Gina Chang TAIPEI, May 12 (Reuters) - Taiwan stocks shed 3.23 percent on Tuesday, their worst one-day decline in three weeks, as losses on Wall Street and other global markets promoted investors to lock in profits from a recent rally in financial and tourism stocks. Weaker sales from local technology companies such as Hon Hai <2317.tw> also raised concerns over the strength of the tech sector's nascent recovery. The main TAIEX share index <.TWII> ended 214.95 points lower at 6,432.55, its weakest finish since May 5. Turnover was active at T$176.5 billion ($5.4 billion), but lower than Monday's T$189.6 billion. The day's fall snapped an eight-session winning streak that had seen the market jump about 19 percent on optimism over potential investments from China. The banking and insurance sub-index <.TFNI> dropped 5.49 percent after jumping about 70 percent since its March low as investors expected financial firms to become major beneficiaries from closer ties with China. Cathay Financial <2882.tw>, the island's top listed financial holding firm, lost 6.83 percent. Chinatrust Financial <2891.tw>, Taiwan's biggest credit card issuer, slid 7 percent to its daily limit. "Losses in U.S. stocks and other global markets triggered today's fall, especially as the local market has risen a lot in the past few sessions," said Robert Hsieh, a vice president of Shin Kong Investment Trust. "Selling by foreign investors yesterday also weighed on the market." Foreign institutional investors sold Taiwan stocks on Monday, snapping a buying spree over the past 10 sessions. (For a table of foreign trading in Taiwan stocks, double-click on [ID:nTP170358]) Mega Financial <2886.tw> and SinoPac Financial <2890.tw> both fell more than 4 percent. Shanghai-based Sino First Bank said it expected a premium of three to four times its current net value from investors looking to take a stake, a local newspaper reported, a day after a report said Mega Financial and SinoPac Financial were contemplating a joint bid for a stake. The tourism sub-index <.THOI> lost 5 percent as China's first confirmed case of the new strain of flu, H1N1, spurred fears over the impact on business. Hotel operators Ambassador Hotel <2704.tw> and Leofoo Development Co <2705.tw> both slid more than 6 percent. In the tech sector, investors were getting cautious after many major local companies reported weak April sales. The electronics sub-index <.TELI> fell 3.22 percent. Hon Hai Precision Industry, Taiwan's largest electronic parts maker and the day's second-most active share by turnover, ended limit-down after its April revenue fell from the month before. [ID:nTP226989] "As the previous rally helped by rush orders comes to an end, investors will now focus on the fundamentals of technology companies and buy stocks of the companies that have a better sales outlook," said Hsieh. Sentiment could also be weak throughout the week as demonstrations organised by Taiwan's main opposition party are set to take place on Sunday to protest against government policies. Some analysts said the market's pull-back could last through early June, but they projected the TAIEX would resume its upward trend ahead of the annual peak manufacturing season for Taiwan's major exporters in the third quarter. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day -3.23 percent Close on day 6,432.55 2009 intraday high 6,680.97 2009 intraday low 4,164.19 All time high 12,682.41 12 FEB 1990 ------------------------------------------------------------ (US$1=T$32.9) ((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging:gina.chang.thomsonreuters.com@reuters.com)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. 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