Traders cautious after China reaction to Chen's speech

Share closed 0.28 percent lower yesterday in cautious trade after Intel Corp's after-hours gains on stronger-than-expected earnings largely offset a weaker Wall Street performance overnight, dealers said.

China's response to President Chen Shui-bian's (陳 水扁) Double Ten National Day address did not hurt the market badly but it did put transport stocks under greater pressure given earlier hopes that travel links with China could be improved after the speech, they said.

The TAIEX closed down 16.49 points at 5,963.07, on turnover of NT$73.65 billion (US$2.18 billion).

Decliners led risers 324 to 312, with 171 stocks unchanged.

The transport sector was down 1.61 percent, with Evergreen Marine Corp (長榮海運) losing NT$1 at NT$34.10.

Yangming Marine Transport Corp (陽明海運) lost NT$0.60 at NT$34.10.

China Airlines (中華航空) lost NT$0.20 at NT$18 while EVA Airways Corp (長榮航空) shed NT$0.15 at NT$14.45.

The construction sector outperformed, rising 1.59 percent on a report that six or seven foreign investors with funds totalling more than NT$30 billion wanted to buy properties in Taipei City and Taipei County.

Cathay Real Estate Co (國泰建設) was up NT$0.50 at NT$19.00 and Kindom Construction Corp (冠德建設) up NT$0.20 at NT$12.15.

Taiwan Semiconductor Manu-facturing Co (台積電) was steady at NT$42.60 while United Microelectronic Corp (聯電) was down NT$0.10 at NT$20.

Nanya Technology Corp (南亞科技) lost NT$0.10 at NT$27.80 after news that Japan's Renesas is filing patent dispute proceedings against it.