Stocks fell yesterday as investors turned negative on companies sensitive to the strengthening Taiwan dollar and on a gloomy technology sector outlook, analysts said.
The Weighted Price Index of the Taiwan Stock Exchange finished 56.07 points lower, or 1 percent, at 5,855.24 in dealings valued at NT$57.5 billion (US$1.78 billion).
Decliners outnumbered advancers 512 to 127, while 128 issues ended the day unchanged.
The sell-off effectively erased gains from Wednesday's rally.
Fund managers say investors are worried a stronger Taiwan dollar could hurt technology companies' profits, because their goods are sold mainly at prices quoted in US dollars.
The electronics subindex fell 1 percent yesterday, as investors sold off shares of dynamic random memory chipmakers. Morgan Stanley warned in a report that the DRAM sector has peaked.
Nanya Technology (
The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (
The rising Taiwan dollar weighed on some of the country's biggest gadget exporters. Quanta Computer (