Shares ended sharply lower yesterday, with renewed worries of higher oil prices following the terrorist attack in Saudi Arabia during the weekend, analysts said.
"Fears of rising oil prices sparked selling pressure on local shares," said Jose Lee, an analyst of First Taisec Securities.
The TAIEX ended down 159.42 points, or 2.6 percent, to 5,977.84. Decliners outpaced gainers 700 to 147 with 129 stocks unchanged.
Turnover slipped to NT$74.65 billion (US$2.23 billion) from NT$89.42 billion (US$2.67 billion) on Friday.
"The terror attack renewed worries over oil price increases, while flat-panel display makers tumbled on China's comments on Chi Mei Optoelectronics Corp (奇美電子)," said Richard Tsai, research vice president at Grand Cathay Securities Co (大華證券).
Chi Mei, Taiwan's second-largest flat-panel display maker, fell 6.9 percent to NT$67. AU Optronics Corp (友達光電), the world's third-largest flat-panel maker, fell by the daily limit of 7 percent to NT$60.
China said that it "doesn't welcome" investments from Chi Mei chairman Hsu Wen-long (
Fears that climbing oil prices may affect the global economic recovery also spurred a sell-off in chip stocks.
Taiwan Semiconductor Manu-facturing (台積電) was 3.5 percent lower at NT$56, while smaller competitor United Microelectronics Corp (聯電) fell 4.1 percent to NT$27.80.
More positive for the bourse was the government's attempts to boost the domestic housing market, which supported construction stocks, helping the subindex rise 0.5 percent.
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