Taiwan shares plunge on mounting SARS fears

Taipei, April 25, 2003 (CENS)--Taiwan shares tumbled to their lowest levels in three weeks yesterday on fears of the mounting of new cases of severe acute respiratory syndrome (SARS) on the island, analysts said.

Investors unloaded their holdings after health authorities reported nine new SARS cases late Wednesday evening, raising concerns of mass transmission of the deadly virus.

Meanwhile, companies with Chinese operations also led the declines on worries that the SARS situation isn't improving in mainland China, which in turn could adversely affect their operations, said analysts.

The weighted price index of the Taiwan Stock Exchange slid 189.99 points, or 4.16%, to 4374.94 in dealings valued at NT$65.48 billion. Decliners led advancers 675 to 27, while 26 issues ended trading flat.

Shares fell across the board, with auto shares losing 6.3%, cements giving up 6.2%, plastics/chemical stocks sliding 5.7%, financial shares declining 5.2% and electronics issues losing 3.2%.

China-linked technology shares, Acer Inc. fell NT$0.90 to NT$33.10, Compal Electronics lost NT$1.30 to NT$38.30 and Hon Hai Precision Industry slid NT$4.50 to NT$110.

Meanwhile, chip foundries Taiwan Semiconductor Manufacturing and United Microelectronics both lost ground, falling NT$1 to NT$47.30 and NT$0.70 to NT$20.60, respectively.

Automaker Yulon Motor extended its losses, falling NT$2.90 to NT$38.60 and China Motor slipped NT$4 to NT$58. Both sell vehicles in China.

With mounting SARS fears, the main index is likely to slide further today and could fell below the low 4275 recorded on April 1, analysts said.

The price index of the over-the-counter market fell 3.32 points, or 3.66%, to 87.50 in dealings valued at NT$5.04 billion.

May index futures on Taiwan's futures exchange closed down 214 points to 4356 on turnover of 33,466 lots. May electronics futures shed 7.30 points to 181.70 on volume of 5,385 lots, while May financial futures dived 41 points to 658.20 on turnover of 4,499 lots.