Concern over weaker US market dampens TAIEX

Shares ended flat yesterday, with caution over recent weakness in the US market countering gains in some non-technology and liquid-crystal-display stocks.

The TAIEX fell 0.03 points to 6,380.00, on turnover of NT$89.07 billion (US$2.79 billion). Advancers outnumbered decliners 430 to 421, with 155 stocks unchanged.

"The US market's recent pullback has prompted investors to unwind their positions in some tech heavyweights," said Jeffrey Cheng, an analyst at Yuanta Core Pacific Capital Management (元大京華投顧).

The local technology subindex was off 0.2 percent as most local chip stocks finished weaker on a continued correction after the main board hit a 15-week high last week.

Market-heavyweight Taiwan Semiconductor Manufacturing Co (台積電), the world's largest contract chipmaker, shed 0.8 percent to NT$53, while rival United Microelectronics Corp (聯電) lost 1.8 percent to NT$21.50.

"There were signs foreign institutional investors continued to pocket their gains from these two heavyweights," Cheng said.

Liquid-crystal-display panel makers gained ground, helping curb losses in the tech sector.

AU Optronics Corp (友達光電), the world's third-largest maker of LCD screens, ended 1.5 percent higher at NT$53.10, while Chi Mei Optoelectronics Corp (奇美電子) rose 2 percent to NT$44.15.

Shares in Compal Communications (華寶通訊) ended 1.9 percent higher at NT$108.