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TAIEX dips again as investors await corporate results

Share prices closed flat yesterday, with trade cautious ahead of corporate first-quarter results due shortly and after Wall Street's overnight losses, dealers said.

However, the market did at least manage to hold its ground within sight of the key 6,000 points level, with investors reluctant to sell down excessively just in case they miss out on an expected technical rebound.

The TAIEX closed down 3.26 points at 5,957.98, on turnover of NT$56.63 billion (US$1.78 billion).

Decliners led risers 509 to 362, with 147 stocks unchanged.

ON THE SIDELINES

"The market seemed to be taking a breather after Tuesday's big decline," said Michael Hsu (許派一), a Jih Sun Securities Investment (日盛投信) assistant vice president.

However, the downside risk remains firmly in place and there is no ruling out the market testing its 288-day moving average, or around 5,900 points, in coming sessions, Hsu said.

While selling pressure has abated investors have yet to find solid justification to buying shares, he said.

As the US Federal Reserve is likely to raise interest rates further before the end of the year, outflows of foreign funds from the region seeking better returns are likely to persist in the foreseeable future, he added.

Foreign institutional investors were net sellers of the country's stocks, selling a net NT$3.69 billion yesterday, according to the stock exchange figures.

NT DOLLAR DIPS

As foreign investors unloaded their Taiwanese stocks, the New Taiwan dollar dropped NT$0.008 at NT$31.784 against the US greenback.
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