Share prices closed 0.12 percent lower yesterday as investors opted to lock in profits rather than push the upside further despite gains on Wall Street and a fall in crude oil prices overnight, dealers said.
They said the bellwether electronics stocks came under particularly heavy profit-taking pressure but rotational interest in financial and cement stocks provided support on the downside.
The TAIEX closed down 7.76 points at the day's low of 6,410.59, on turnover of NT$106.73 billion (US$3.34 billion).
"Wanting to lock in profits was no surprise at all after a very positive week," said SinoPac Securities (建華證券) assistant vice president Alvin Teng (鄧安瀾). "Short-term traders can readily start buying again after the weekend."
A big increase in the outstanding balance of margin lending Thursday was a clear indication that small investors were wanting to get back into the market, which had just breached strong resistance at the 10-year moving average of around 6,400 points, he said.
Both of the key chipmakers dropped. Taiwan Semiconductor Manufacturing Co (
Bank shares rose on a Chinese-language newspaper report that Singapore's Temasek may buy a Chang Hwa Commercial Bank (
Net buying of stocks by foreign investors may be slowing as they await next week's earnings from US tech companies that buy from Taiwanese suppliers, said Alex Kao, vice president at Masterlink Securities Corp (
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