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14:27 26Aug09 RTRS-Taiwan stocks end lower, hit by LCD shares * LCD makers fall on LG plans to build plant in China * Property stocks fall after mortgage subsidy ends * Medical-related plays jump on report of more H1N1 cases (Updates to close; adds quotes, details) TAIPEI, Aug 26 (Reuters) - Taiwan stocks closed down 1.32 percent on Wednesday, pulled down by LCD makers such as AU Optronics <2409.tw> after bigger rival LG Display <034220.ks> signed a non-binding agreement to build a plant in China. The main TAIEX share index <.TWII> finished 90.2 points lower at 6,719.21, retreating for a second straight session. "LCD makers in Taiwan fear that they could become less competitive compared to their South Korean counterparts in winning orders as a result of the LG deal," said Tu Jin-lung, chairman of Grand Cathay Investment Services. Losses were led by the world's No.3 flat-panel maker AU Optronics , also the second most active share by volume, which slipped 3.02 percent. The optoelectronics sub-index <.TOPI> ended 2.73 percent lower. Its shares fell after bigger rival LG Display <034220.ks> said it had signed a non-binding agreement to build a plant in China, in a move that could help the South Korean firm win more Chinese contracts. [ID:nSEO41715] Au Optronics' smaller cross-town rival Chi Mei Optoelectronics <3009.tw> also dropped, slipping 4.99 percent. Turnover was thin at T$101 billion ($3.07 billion), amid political turmoil in the aftermath of Typhoon Morakot that could result in a cabinet reshuffle, and as local media played up stories about the ongoing threat of H1N1 flu outbreaks. "With a turnover so thin, the market could be exceptionally vulnerable to any sentiment swings," said Tu, who expects the TAIEX to remain volatile until early September, when the government releases its new cabinet list. Construction and real estate stocks <.TCOI> also slipped, falling 4.95 percent after local newspapers reported that the island's government would end a subsidy programme that gave home buyers preferential mortgage rates. Property developers were worst hit, including Taiwan Land <2841.tw>, which fell by its daily 7 percent maximum limit. Gainers included medical-related plays. China Chemical and Pharmaceutical <1701.tw>, the session's sixth most-active stock by volume, surged nearly 7 percent after Taiwan's health authorities warned that H1N1 infections could peak this autumn. HOT STOCKS -- Quanta <2382.tw>, the world's largest contract laptop PC maker, jumped 3.13 percent after a local newspaper reported that it had won a contract to make 3G-enabled netbooks for China Mobile <0941.hk>. -- Compal <2324.tw>, the world's second-largest contract laptop PC maker, climbed 1.25 percent after a local newspaper reported that the company had won a contract to manufacture Nokia's newly launched netbooks. ---------------------TAIEX IN PERSPECTIVE--------------------- Move on day -1.32 pct Close on day 6,719.21 2009 intraday high 7,142.63 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] (Reporting by Joan Hsu; Editing by Ken Wills) ((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
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