Financial and tech shares weigh heavily on TAIEX

Shares finished moderately lower yesterday led by declines in financial and technology issues.

The TAIEX finished down 17.17 points, or 0.3 percent, at 6,048.74. Decliners outnumbered advancers 541 to 328, while 151 issues ended the day unchanged.

Concerns over the continued net selling of Taiwanese stocks by foreign investors, rising interest rates across the globe, and changes in the country's accounting rules made investors reluctant to put money in the local stock market, dealers said.

Saturday's peaceful protest against China's "Anti-Secession" Law did little to boost share prices, traders and analysts said.

Financial stocks were among the worst performers yesterday, falling 0.7 percent overall. Chang Hwa Bank (彰化銀行) was down 2.3 percent to NT$18.80 on continued speculation that the government's plan to sell the bank's shares to foreign investors may fall through.

China Development Financial Holding (中華開發金控), which is expected to buy two local brokerages, fell 1.9 percent to NT$12.75 on worries that the acquisition may not overcome opposition from the company's board.

Shares of flat-panel screen makers were lower on profit-taking. Chi Mei Optoelectronics Corp (奇美電子) finished down 1.1 percent at NT$44.60, after its shares rose 5.1 percent last week. AU Optronics Corp (友達光電) ended 1.7 percent lower at NT$44.10, after the stock gained 5.5 percent last week.

Analysts said large selling by foreign investors recently also softened the Taiwanese stock market.