08.23.2001
TSMC shares fall on warrant issue

• Development: TSMC TSE fell 7% and TSM ADR 10.8% in yesterday’s trading session on a recent warrant issue on TSMC in an overseas market by Merrill Lynch.

• Analysis: We suspect arbitraged positions will likely have been cleared out yesterday with spread narrowing to 38%, close to this year’s low. In today’s session, we believe a share price level of around NT$60 offers a good entry opportunity for both Short and Longer-term buying interests.

• Primasia View: Technical influence on shares will likely end in a short time. We maintain our rating.