***SRAM sales to the U.S. market made up less than one percent of UMC's total revenue.***
Taiwan stocks defy U.S. punitive duties, end mixed
TAIPEI, Feb 16 (Reuters) - Taiwan share prices rebounded
from early losses to close mixed on Monday, defying reports that
the United States would impose punitive duties on Taiwan memory
chip makers accused of dumping on the U.S. market.
* Close: up 0.02 percent/1.83 points at 8,708.29.
* Turnover: moderate at T$150.9 billion.
* U.S. Department of Commerce last week recommended punitive
duties on Taiwan chip giants United Microelectronics (TW:2303),
Taiwan Semiconductor (TW:2330) and Winbond (TW:2344) and
several unlisted makers.
After initial knee-jerk selling, prices recovered in late
trade as investors apparently decided the penalties involving
sales of static random access memory chips, or SRAMs, would not
dent the blue-chip companies' profit outlook, brokers said.
"The market felt SRAM sales to the United States constitute
too little of the firms' overall revenue to make a significant
impact," said Michael On, head of Beyond Asset Management.
Ben Lee, research manager for Nomura Securities, estimated
SRAM sales to the U.S. market made up less than three percent of
Winbond's total revenue and less than one percent of United
Microelectronics' total revenue.
"The punitive measures were well-anticipated by the market
and they really weren't a major bearish factor," Lee said.
United Micro, Taiwan's number two chipmaker, fell T$5 at the
opening but recovered half of that to close T$2.50 lower at
T$75. Winbond opened T$1 lower but finished even at T$53.
Taiwan Semiconductor, Taiwan's top chipmaker which has only
scant SRAM production, rose T$3 to T$146.
Brokers said they expected the market to resume its recent
bull charge on Tuesday, seeing a range of 8,650-8,850. |
