Taiwan shares end lower on concerns of second-half outlook

Taipei, July 22, 2003 (CENS)--Taiwan shares ended lower for the second straight session yesterday amid concerns over the second-half outlook for local technology stocks, analysts said.

Investors adjusted their holdings in technology stocks as a number of ex-rights issues of local electronics firms, including Acer Inc., World Peace, AU Optronics and Taiwan Semiconductor Manufacturing Co., will be available for trade starting this week, said analysts.

The weighed price index of the Taiwan Stock Exchange finished down 68.08 points, or 1.29%, to 5219.30 in dealings valued at NT$94.66 billion, down from NT$101.3 billion in the previous session. Declining shares outnumbered advancers 451 to 188, while 107 issues remained unchanged.

The market got off to a good start at the opening, fueled by gains in U.S. stocks late last week, but soon lost its momentum after investors decided to lock in profits of recent as well as early gains.

The electronics sector closed down 1.8%, led by declines in such issues of flat panels, CD-Rs and DRAM chips, analysts said.

Flat panel makers AU Optronics lost NT$1.30 to NT$30.90, and Chunghwa Picture Tubes gave up NT$1.20 to NT$16.40.

DRAM chipmakers Winbond Electronics and Nanya Technology each ended down NT$0.80 to NT$20 and NT$26.20, respectively.

CD-R makers CMC Magnetics slid NT$1.50 to NT$25, and Ritek lost NT$0.40 to NT$15.20.

Meanwhile, Taiwan Semiconductor Manufacturing fell NT$1 to NT$57 ahead the company's investors conference scheduled July 24. Rival United Microelectronics slipped NT$0.40 to NT$24.

Of other sectors, steel issues gained 0.95% and automobile stocks edged up 0.2%, and paper issues rose 1.3%, while financial shares ended down 1.46% and foodstuff issues went down 0.8%.

The price index of the over-the-counter market finished down 1.92 points, or 1.73%, to 108.90 in dealings valued at NT$15.3 billion.

August index futures on Taiwan's futures exchange closed down 16 points to 5239 on turnover of 33,340 lots. August electronics futures shed 3.70 points to 228 on volume of 4,687 lots, while August financial futures lost 6.60 points to 712 on turnover of 1,579 lots.