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(AFX UK Focus)
2009-11-23 02:54
Taiwan stocks almost flat; Mediatek weighs |
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TAIPEI, Nov 23 (Reuters) - Taiwan stocks inched down 0.06 percent on Monday as uncertainty over the strength of economic recovery and consumer spending triggered selling in tech heavyweights such as Mediatek As of 0152 GMT, the main TAIEX share index had fallen 0.73 points to 7,682.24. "We are still waiting for the next batch of data to tell us more precisely how technology companies' sales will turn out, " said Tom Tang, a vice president at Masterlink Investment Advisory. "But before those numbers come, foreign investors are going to want to pocket gains in tech shares." Chip designer Mediatek, the most-active stock by turnover, dropped 0.76 percent, while UMC, the world's second largest contract chip maker, declined 0.63 percent. The broader electronics sub-index stayed flat. Analysts said the main index could be exempted from huge losses, trading between 7,600 and 7,800 this week, as the government could prop up prices to boost investor confidence before local mayoral elections on Dec 5. While foreign investors took profit in Taiwan stocks, domestic brokerages and retail investors picked up shares of LCD makers and laptop PC makers as they bet an improving economy could spur corporate and consumer spending next year. The island's top state planner said Taiwan was setting an economic growth target of about 4 percent for next year after suffering its steepest downturn this year. Export orders are seen gathering steam as a recovery in the global economy could spur stronger demand, a Reuters poll showed. LCD maker Chi Mei Optoelectronics was up 1.23 percent and rival AU Optronics added 0.63 percent as investors bet on higher panel prices. Contract PC maker Compal outperformed peers to edge up 0.59 percent after a local newspaper reported that its parent group would sign an agreement with China's Ministry of Industry and Information Technology on Tuesday to jointly develop a 3G cellular network based on China's TD-SCDMA standard. DRAM makers were mixed following a local media report that Taiwan Premier Wu Den-yih would support the economics ministry in its push to restructure Taiwan's DRAM chip sector. ProMOS Tech jumped 2.13 percent. Powerchip and Nanya Tech fell 1.35 percent and 2 percent, respectively.
((Reporting by Joan Hsu; Editing by Jonathan Hopfner))
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