Shares finished lower yesterday, ending a five-day winning streak after declines on Wall Street overnight.
The TAIEX finished 15.98 points, or 0.2 percent, lower at 6,665.54. Dealings were valued at NT$174.5 billion (US$5.25 billion). Decliners outnumbered advancers 466 to 316, while 183 issues ended the day unchanged.
"The market lost steam in line with the overnight correction on Wall Street ... people became a bit more cautious," Yuanta Core Pacific Securities Co (
At the same time, the losses were "not significant as most investors seem to believe there will be more liquidity-driven gains in the near term," he said.
Shares are likely to move into a consolidation phase next week as the index approaches the psychological level of 6,700, dealers said.
But they said the upward trend would stay intact on anticipation of more government incentives ahead of the March 20 presidential elections to boost share prices.
There might be some position-building in the electronics sector, which had lagged behind the others during recent rallies, but not enough to push the index beyond the 6,700-point level in the near term, he said.
AU Optronics Corp (友達光電), the nation's largest maker of flat-panel displays for computers and televisions, was up NT$0.50 at NT$53.00, largely consolidating its solid gains accumulated in recent sessions. Chi Mei Optoelectronics Corp (奇美電子) dropped NT$0.20 at NT$46.50 and Chunghwa Picture Tubes Ltd (中華映管) rose NT$0.10 at NT$17.30.
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