Shares ended lower yesterday on renewed worries about terror threats in the US as well as rising oil prices, analysts said.
The TAIEX closed down 70.17 points, or 1.3 percent, at 5,350.40. Decliners well outnumbered gainers 624 to 91 with 200 stocks unchanged. Turnover totaled NT$41.75 billion (US$1.22 billion).
"Most investors preferred to stay on the sidelines as concerns grew over terror attacks in the US," said Hsiuli Lee, a manager at Franklin Templeton First Taiwan. Lee said further gains in oil prices hurt sentiment. In New York trading on Friday, crude oil futures rose more than US$1 to an all-time high of US$43.85 a barrel.
Electronics shares fell 1.7 percent as a whole, led by chip and flat panel stocks.
AU Optronics Corp (友達光電), the world's third-largest flat panel maker, tumbled 5.3 percent to NT$37.50, while Chi Mei Optoelectronics Corp (奇美電子) slumped 6.8 percent to NT$42.50.
"Many retail investors were forced to bail out their long positions on panel stocks due to margin calls," Lee said.
Lingering concerns over weak demand and lower product prices also weighed on memory chip shares. Powerchip Semiconductor Corp (
The plunge in memory chip stocks spilled over into other chip issues. Taiwan Semiconductor Manufacturing Co (台積電), the world's largest contract chipmaker, slipped 0.2 percent to NT$42.80. Rival United Microelectronics Corp (聯電) ended 0.9 percent lower at NT$21.50.
RSS