* Market dips for fifth session
* Powerchip limit-down ahead of convertible bond results
* TSMC rises after hiring plan
(Adds details and quotes)
TAIPEI, June 18 (Reuters) - Taiwan stocks fell 0.83 percent
on Thursday in light trading, hitting a 1-1/2-month closing low,
with DRAM maker Powerchip <5346.TWO> sliding ahead of the
outcome from bond negotiations with investors later in the day.
The main TAIEX share index <.TWII> closed 51.38 points lower
at 6,144.53, paring early gains to touch its weakest finish since
April 30 and posting losses for the fifth straight session.
Turnover was thin at T$94.9 billion ($2.9 billion), lower
than Wednesday's T$99 billion as sentiment remained cautious
following a sharp pullback over the past few weeks, which made
the TAIEX one of the world's worst performers so far in June.
Investors have been booking profits on concerns over the
local market's momentum after months of rally. Despite the day's
decline, the TAIEX was still up 34 percent so far this year.
Powerchip, Taiwan's biggest DRAM chipmaker, shed 7 percent
to its daily limit on concerns over the company's negotiations
on its convertible bond with investors.
"Powerchip's bond plan will likely be resolved after the
ProMOS' precedent. It also has enough funds to help support
itself," said Bevan Yeh, a senior fund manager of Prudential
Financial Securities Investment Trust.
"But if Powerchip's case drags on like ProMOS, it'll have
very negative impact on Taiwan's DRAM industry."
The DRAM maker on Wednesday said a majority of investors
holding its convertible bond had accepted its offer to reset the
terms of the bond that would mature later on Wednesday.
[ID:nTP33148]
The company will announce the results of the talks on
Thursday.
In April, ProMOS <5387.TWO>, Taiwan's No.3 DRAM firm,
secured a T$2.98 billion loan from a banking consortium after
having expected the funds for months to help pay off its
convertible bond that was issued five years ago.
Shares of ProMOS declined 4.5 percent, lagging a 0.68
percent rise of the broader semiconductor sub-index <.TSII>.
Uncertainty over Powerchip's bond repayment plans further
weighed on the financial sub-index <.TFNI>, which closed the
session 1.6 percent lower. Cathay Financial <2882.TW>, the
island's biggest listed financial holding firm, lost 1.3
percent.
Far EasTone <4904.TW>, one of Taiwan's top three mobile
carriers, fell 0.39 percent, despite saying on Wednesday that it
hoped to complete its controversial sale of a 12 percent stake
to China Mobile <0941.HK> by early next year. [ID:nHKG33582]
Separately, China Mobile, China's dominant mobile carrier,
on Thursday said it has no intention of taking control of Far
EasTone if its controversial purchase plan was approved.
[ID:nHKG3108]
However, Taiwan Semiconductor Manufacturing Co (TSMC)
<2330.TW>
after saying it intends to hire 30 percent more R&D engineers as
part of its effort to move up the technology ladder.
[ID:nTP58495]
TSMC shares jumped 1.4 percent, outperforming the
electronics sub-index's <.TELI> 0.39 percent decline.
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day -0.83 percent
Close on day 6,144.53
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 Ken Wills)
(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))
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Thursday, 18 June 2009 14:23:32RTRS [nTP63805] {EN}ENDS
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