Taiex Falls 27 Points As Demand For Flat-Panel Screens Declines

Taiwan News - 11/01/08

Taiwan's Taiex index fell, led by flat-panel display maker Wintek Corp., after Credit Suisse Group cut its share-price forecast for the stock, citing declines in first-quarter sales.

"Panel makers are entering into a period of soft demand, making their shares less attractive to investors," said Dennes Chang, who helps manage US$2.5 billion at Jih Sun Securities Investment Trust Co. in Taipei.

Asustek Computer Inc. dropped after the company said sales in December declined by more than a fifth from a year earlier.

The Taiex fell 27.79, or 0.3 percent, to close at 8,057.27 in Taipei. The measure added 2.6 percent in the past two days. About seven stocks climbed for every four that declined. Futures due in January lost 0.3 percent.

Wintek declined NT$1.95, or 5.6 percent, to NT$33.05. Analyst Felix Rusli cut Credit Suisse's share-price forecast to NT$54 from NT$60. The brokerage expects Wintek's first-quarter sales to drop 14 percent from the previous quarter on seasonal slower demand, according to a report yesterday.

Innolux Display Corp., which assembles flat-panel monitors and televisions, fell NT$4.40, or 4.9 percent, to NT$86.10. AU Optronics Corp., the largest Taiwanese flat-panel maker, slid 20 cents, or 0.4 percent, to NT$56.40. Chi Mei Optoelectronics Corp., Taiwan's second-largest LCD maker, slipped 80 cents, or 1.9 percent, to NT$40.90.

Cathay Real Estate Development Co., Taiwan's second-biggest construction company by market value, rose 35 cents, or 2.4 percent, to NT$15.20. Taiwan's government plans to set up a company to boost city redevelopment, the Economic Daily News reported yesterday, citing the council.