stock / 32.885 / 779/ +0.27

14:06 16Jun09 RTRS-Taiwan stocks inch lower, Mediatek slides * Market at new 1-1/2-mth closing low * One of world's worst performers so far in June * Mediatek slides on reports of dismal outlook * Property issues up on hopes of recovery (Adds details and quotes) TAIPEI, June 16 (Reuters) - Taiwan shares fell slightly on Tuesday in light trading, slipping to their lowest close in 1-½ months as Mediatek <2454.tw> led tech shares lower on reports of a dismal outlook for the third quarter. The main TAIEX share index <.TWII> ended 0.08 percent, or 4.75 points lower at 6,220.81, its weakest finish since April 30. That brought its losses to 5 percent over the past three sessions. Turnover was light at T$109 billion ($3.3 billion), the lowest level in 2-½ months, as cautious investors stayed sidelined after recent losses. The local market has underperformed other major global markets in June, sliding nearly 10 percent so far this month after having rallied from its 2009 lows in late January. Mediatek, Taiwan's largest chip designer and the most active share by turnover, ended down 4.8 percent, underperforming a 0.25 percent fall in the electronics sub-index <.TELI>. Mediatek has cut its production orders to contract chip manufacturers for the third quarter by 30 percent, more than a previously planned 10 percent reduction, as demand from China and other emerging markets slipped, local media reported on Tuesday. "Mediatek was too optimistic, so the cut (in production orders) is quite reasonable,"said Michael On, a managing director of Beyond Asset Management. "Besides Mediatek, other tech companies like laptop makers might also see slower sales in the third quarter." However, Hon Hai <2317.tw>, Taiwan's top electronics parts maker, rose 2.2 percent after BNP Paribas upgraded the stock to a "buy" and raised its target price to T$120. [ID:nTP15830] Wistron <3231.tw>, Taiwan's No.3 contract laptop maker, gained 2.6 percent after a newspaper said the company has set the price of its global depository receipts at $14.90, and will issue about 25 percent more GDRs than previously expected. "Wistron finalized the GDR pricing, which we believe helps remove the overhang on the stock, as people had been worried about the magnitude of the GDR price discounts and share dilution," said Morgan Stanley in a research report on Tuesday. Morgan Stanley also maintained its "overweight" rating on Wistron due to the company's strong growth prospects in 2010 and attractive valuation. Netbook pioneer Asustek <2357.tw> fell 0.25 percent, giving up early gains. The firm said on Tuesday it could turn to an operating profit in the current quarter as it works to turn around its business after two straight quarters of operating losses. [ID:TPU001422] The construction sub-index <.TCOI>, which has more than doubled so far this year, gained 1.4 percent on hopes of recovery, with real estate developer Farglory <5522.tw> up 2.5 percent. The sector was further boosted by media reports that insurer Shin Kong Life had decided to delay the sale of two of its properties in Taipei's Neihu district planned for the second half of this year as it expects prices to rise in coming months. Shin Kong Financial <2888.tw>, parent of Shin Kong Life, ended the session flat. --------------------TAIEX IN PERSPECTIVE-------------------- Move on day -0.08 percent Close on day 6,220.81 2009 intraday high 7,084.83 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$32.9) (Reporting by Gina Chang; Editing by Kim Coghill) ((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. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS] OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU] DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary [WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts TOP NEWS: For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks <0#.index> Currency rates Dow Jones/NASDAQ <.DJI> <.IXIC> Nikkei <.N225> FTSE 100 <.FTSE> Debt <0#usbmk=> Taiwan dollar LME price overview TAIWAN MARKET: Taiwan equity mkt TAIEX <.TWII><.TV.TW> Other indices
[Story not fully loaded, incomplete text]