REUTERS Taiwan stocks flat but June results comfort techs [DLBVTZM]
(Updates index, adds analyst comment)
TAIPEI, July 9 (Reuters) - Taiwan stocks were little changed
in listless morning trade on Friday, though firm June corporate
revenues offered comfort to the battered electronics sector and
helped it ignore losses in U.S. markets.
The TAIEX share index <.TWII> was off just 3.68 points, or
0.06 percent, at 5,709.71 after 80 minutes of trade, never
straying more than 40 points up or down.
Top contract microchip maker Taiwan Semiconductor
Manufacturing Co <2330.TW> <TSM.N>, the market's most heavily
capitalised stock, was up 0.22 percent after reporting record
high revenues for a third consecutive month on Thursday.
"Electronics shares are in an awkward position because
opinion is very divided on their outlook for the third quarter,"
said Richard Tsai, senior vice president in charge of research at
Grand Cathay Securities.
"But prices have already fallen by a lot and there are signs
that the market has overshot" based on June revenues, he said.
The electronics subindex <.TELI> was up 0.12 percent, defying
a 1.56 percent tumble on the Nasdaq composite index <.IXIC>
following weak results from Internet company Yahoo <YHOO.O> and
software firm Siebel Systems <SEBL.O>.
Buying in the electronics sector was highly selective,
however, with downstream computer manufacturers making a weaker
performance on worries back-to-school demand in the third quarter
would be sluggish.
"Our advice to clients on electronics is to carefully pick
oversold shares with good fundamentals," Tsai said.
Quanta Computer Inc. <2382.TW>, the world's largest contract
manufacturer of laptop computers, slipped 2.24 percent to T$65.50
while main local competitor Compal Electronics <2324.TW> slipped
0.29 percent.
Construction-related stocks like cement firms and builders
were mostly stronger, powered by expectations of more business
from reconstruction in Taiwan's central and southern regions
after heavy damage from severe floods.
Taiwan Cement <1101.TW>, the island's largest cement maker,
was up 0.64 percent at T$15.80
(US$1 = T$33.7)
((Reporting by Michael Kramer, editing by Tiffany Wu;
michael.kramer@reuters.com; Reuters Messaging:
michael.kramer.reuters.com@reuters.net; +886 2 2508-0815))
