Taiwan's Cathay Fin drops 5 pct on disappointing estate value

TAIPEI, May 5 (Reuters) - The following Taiwan stocks were on the move on Monday.

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TAIEX DOWN 1.48 PCT AT 8,830.62 AT 0320 GMT

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Shares of Cathay Financial (2882.TW: Quote, Profile, Research, Stock Buzz), Taiwan's top financial holding firm, dropped more than 5 percent to its lowest level in nearly three weeks after its insurance arm posted a disappointing appraisal of its real estate investments.

Cathay shares fell 5.1 percent, sending the financial sub-index 3.43 percent lower. Shares of Shin Kong Financial (2888.TW: Quote, Profile, Research, Stock Buzz), the smaller peer of Cathay, plunged 6.2 percent.

Cathay Life's value of its property investments had risen only 56 percent, or T$75.7 billion, over the last six years. [ID:nTP329199]

"We see the potential for a short-term downside, due to the disappointing real estate appraisal result," Leman Brothers analyst Sarah Huang said in a recent research report.

"But, we think the downside will be limited given the company's laggard performance in 1Q08 and improving earnings outlook for 2Q08," she said. (US$1=T$30.5) (Reporting by Faith Hung; editing by Ken Wills)