Taiwan Stocks: Asustek Computer, Formosa Plastics, Sino-American

Shares of the following companies had unusual moves in Taiwan trading. Stock symbols are in parentheses and prices are as of the close in Taipei.

The Taiex Index retreated 0.8 percent to 7,222.05, the biggest drop since June 8. The gauge gained 0.9 percent this week, the second week of increases.

Developers: Cathay Real Estate Development Co. (2501) (2501 TT), the second-largest developer in Taiwan, retreated 0.8 percent to NT$13.30. Prince Housing and Development Corp. (2511 TT) fell 1.3 percent to NT$19.80.

Taiwan will impose selective credit controls on luxury housing from June 22, with mortgages capped at 60 percent of the value of the property in Taipei and New Taipei city for values of more than NT$80 million ($2.7 million), and NT$50 million in other parts of Taiwan, according to a statement from the island’s central bank yesterday.

Asustek Computer Inc. (2357) (2357 TT) slumped 4.6 percent to NT$281.50, the most since May 23. The computer maker cut prices of some of its new Zenbook notebook computers to compete with Apple Inc. in North America, Apple Daily reported.

The company will cut prices for its older generation notebooks, while keeping the retail price of the new models, David Chang, the company’s Chief Financial Officer, said in a telephone interview in Taipei. It’s a normal practice for the company and won’t impact their revenue forecast, he said.

Formosa Plastics Corp. (1301) (1301 TT) dropped 3.1 percent to NT$77.30, the biggest loss since May 30. Nan Ya Plastics Corp. (1303) (1303 TT) retreated 2 percent to NT$55. Formosa Chemicals & Fibre Corp. (1326) (1326 TT) declined 3.1 percent to NT$77.10, the most since Dec. 6. A power failure at plants in Mailiao will lower sales at the group’s four biggest units, Formosa Plastics Group said in an e-mailed statement yesterday. The accident will cut the profit of Formosa Plastics, Nan Ya Plastics, and Formosa Chemicals by NT$100 million each, according to the statement.

Radiant Opto-Electronics Corp. (6176) (6176 TT), a liquid-crystal display maker, jumped 3.7 percent to a record high of NT$156. The company’s share-price estimate was raised 16 percent to NT$177, and maintained with an outperform rating, the equivalent of buy. Tablets, ultra-slim notebooks, and desktop computers will support earnings growth, Jeff Su, an analyst at Macquarie Group Ltd. wrote in a note to investors dated yesterday.

Sino-American Silicon Products Inc. (5483) (5483 TT) sank 3.7 percent to NT$45.80, the lowest close since Dec. 28. The provider of silicon used in solar cells plans to sell 80 million shares at NT$43.27 each, according to a statement to the Taiwan Stock Exchange today.

To contact the reporter on this story: Weiyi Lim in Singapore at wlim26@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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