Share prices closed 0.46 percent lower yesterday as investors opted to take profits rather than push the market much beyond the key 6,400-points resistance level, dealers said.
Electronics stocks, which reversed a sharply lower opening, took the main index to a high of 6,478.64 points before sliding back again.
The TAIEX closed down 29.78 points at 6,394.03, on turnover of NT$113.59 billion (US$3.55 billion).
The initial weakness was triggered by investors holding short positions in index futures contracts for July trying to push the TAIEX down to optimize their returns at the settlement 15 minutes into the session, dealers said.
The market then recovered on the electronics lead, only to slip back again as profit-taking set in.
"Once again, profit-taking emerged toward the close and effectively curbed the market's further advance from 6,400 points or around its 10-year moving average," First Taisec Securities (
After the settlement of July's TAIEX futures contracts shortly after the opening, investors made a temporary attempt to push the index higher by buying into bellwether electronics, he said.
Taiwan Semiconductor Manufacturing Co (
Flat-panel makers were mostly higher. AU Optronics Corp (
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