Profit-taking drags TAIEX down after winning streak

Shares ended lower yesterday, snapping a six-session winning streak, as investors pocketed gains from the recent rally, analysts said.

The TAIEX closed down 47.19, or 0.7 percent at 6,635.54. Decliners outnumbered gainers 581 to 251 with 144 stocks unchanged in trading valued at NT$160 billion (US$4.84 billion).

"Profit-taking emerged and offset the main bourse's early gains as investors turned cautious in view of the recent strong rally," said Tu Jing-Lung (杜金龍), a vice president at Grand Cathay Securities Co (大華證券).

The benchmark index rose nearly 9 percent in the previous six sessions as the US market rebounded and political turmoil after the presidential election gradually eased.

The electronics subindex ended 0.4 percent lower, led by flat-panel stocks. Shares of the flat-panel makers had surged recently on expectations of strong first-quarter earnings, analysts said.

AU Optronics Corp (友達光電), the world's third-largest flat-panel maker, ended down 4.6 percent at NT$62.50, Chi Mei Optoelectronics Corp (奇美電子) dropped 3.1 percent to NT$62 and Chunghwa Picture Tubes Ltd (中華映管) sank 4.4 percent to NT$21.90.

United Microelectronics Corp (聯電), one of the world's largest chipmakers, rose 1.3 percent on hopes the company will post stronger March revenue growth than its bigger rival, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), analysts said.

TSMC, the world's largest contract chipmaker, ended flat at NT$62.