Shares finished lower yesterday on a late-session sell-off as investors chose to lock in profits ahead of the weekend, dealers said.
The TAIEX, which had gained 20 percent so far this year to close near a 42-month high Thursday, lost 90.42 points, or 1.3 percent, to end at 6943.68.
"Most investors should have made enough profit following the big bull run this year," said Alan Tseng, a Capital Securities vice president.
"And it is typical to see sell-offs like this before weekends, especially in a winning week," Tseng said.
A record 11.6 billion shares worth NT$25.4 billion (US$7.6 billion) changed hands, doubling the daily average of the past three months.
"Many Taiwanese stocks have risen too much too fast," said Jerry Chen, a fund manager at First Global Investment Trust Co in Taipei.
"Investors are selling shares to ease worries that companies' profit growth may not justify their stock prices," Chen said.
Financial and construction stocks -- leaders in last weeks' rally -- fell more steeply than others, losing 3.4 percent and 4.4 percent, respectively.
Cathay Financial Holding Corp (國泰金控), the nation's largest financial company by market value, fell 3 percent to NT$65, while Fubon Financial Holding Co (富邦金控) was off 5.3 percent to NT$36.
Among flat-panel display makers, Chunghwa Picture Tubes (中華映管) fell 5.3 percent to NT$21.50. The company said in January it had net income of NT$978 million for last year, compared with a net loss of NT$3.44 billion in 2002.
Quanta Display (
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