Share prices close lower amid series of profit warnings

Share prices closed 0.43 percent lower yesterday amid concerns over the prospects for the electronics industry after a series of profit warnings from several major companies, dealers said.

They said the fact that foreign investors were net sellers on Wednesday did not help sentiment while concerns over the financial well-being of selected second-tier technology firms added to the negative tone.

The TAIEX closed down 25.14 points at 5,853.94, on turnover of NT$59.88 billion (US$1.87 billion).

Decliners led gainers 421 to 288, with 186 stocks unchanged.

"Foreign investors were net sellers yesterday, triggering worries over their stance toward Taipei stocks. These concerns were aggravated by uncertainties about the outlook for the key technology sector," said Stanley Hsu, a manager at First Taisec Securities.

Heavyweight financial stocks were also undermined by a report that the Democratic Progressive Party is pessimistic about the future of a major financial bill pending final approval in the legislature.

"Investors have lost patience over various industry uncertainties," Hsu said.

Taiwan Semiconductor Manu-facturing Co (台積電) lost 0.4 percent at NT$46.80, with rival United Microelectronics Corp (聯電) down 2.6 percent at NT$18.90.

Formosa Plastics Corp (台塑) closed 1.9 percent higher at NT$55.00 on a report that it has decided to raise polyvinyl chloride (PVC) prices by more than 5 percent from next month.

Asustek Computer (華碩) rose 0.6 percent to NT$85.00 after reports it has been chosen by Apple Computer Inc to produce its Mac Mini personal computer.