Taiwan stocks open slightly up, consolidation seen
Reuters Story - March 08, 1998 20:20
%&64 %TW %STX %US %DPR %ELI %ELC %EMRG %.TW CPQ %FUND V%REUTER P%RTR
TAIPEI, March 9 (Reuters) - Taiwan share prices opened
firmer on Monday, and brokers said they saw consolidation as
investors were waiting to see Wall Street's reaction to U.S.
giant Compaq Computer's warnings of slowing earnings.
* After seven minutes at 0107 GMT, the index was up 9.48
points or 0.11 percent at 8,860.22. Turnover was brisk at T$16
billion.
* Compaq said after Wall Street's Friday close that it
expects its first-quarter earnings to be far below forecast
because of weak personal computer demand and plunging prices.
* Electronics were down 2.0 percent, but constructions and
textiles were higher.
* Oliver Fang, institutional sales chief, National
Securities: "Consolidation is most likely as the market is still
waiting to see how Wall Street reacts to Compaq's warnings on
Monday."
* But brokers said the Taiwan index in late Saturday trade
already had discounted most of the Compaq impact, and said they
did not expect the Compaq factor to have great impact on Taiwan
electronics firms.
"Becuase of the popularity of low-end personal computers,
Compaq's earnings surely will slow," Fang said.
"But Taiwan is different," Fang said. "As one of the world's
major high-tech original equipment manufacturing bases, Taiwan
may see its profit margins be cut somewhat in low-end PC
production, but the rising orders will be enough to benefit
Taiwan makers."
Brokers said the market did not react to International
Monetary Fund's delay of bail-out funds to Indonesia. |
