Shares ended lower yesterday as investors turned cautious ahead of the reporting season for corporate earnings.
The TAIEX finished 44.65 points, or 0.7 percent, lower at 5,979.42 on turnover of NT$51.00 billion (US$1.61 billion). A total of 690 stocks fell, 199 rose and 124 ended unchanged.
"Uncertainties over how the new accounting rules on asset appraisal will affect company earnings have soured sentiment," said Derek Lam, head of trading at Fubon Securities (
The government has implemented new regulations for how a company should value its long-term investments and assets.
Analysts worry that many companies will report losses after revaluing their assets in accordance with the stricter rules.
Listed companies are required to disclose audited earnings for all of last year and the first quarter of this year before the end of the month.
Panel stocks were among the worst performers, as analysts generally expect flat-screen makers to deliver poor earnings in the three months ending March 31.
AU Optronics Corp (友達光電) shed 2.8 percent to NT$48.0, while Chi Mei Optoelectronics Corp (奇美電子) dropped 3.5 percent to NT$49.0.
Taiwan Semiconductor Manu-facturing Co (
Lam said earnings concerns are likely to weigh on the market for the entire month.
Hon Hai Precision Industry (鴻海精密) rose 1.1 percent to NT$141.0, after the company posted record monthly revenue of NT$50.8 billion (US$1.6 billion) for last month.
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