TAIEX ends slightly lower as investors' mood turns wary

Shares ended slightly lower yesterday as investors turned cautious after recent gains.

The TAIEX fell 23.16 points, or 0.4 percent, to 6,356.84 on turnover of NT$106.51 billion (US$3.33 billion).

Since mid-April, the index has risen 16.5 percent.

"Investors are now less eager to chase prices higher after the big rally recently," said Derek Lam, Fubon Securities Co's (富邦證券) head of trading.

Despite the overall drop yesterday, chip designer Silicon Integrated Systems Corp (矽統) surged on news of orders from Intel Corp.

Silicon Integrated soared 6.8 percent yesterday to NT$27.40 after a Chinese-language business daily reported the company will get orders from Intel.

United Microelectronics Corp (UMC, 聯電), the world's second-largest contract chipmaker, which has a 16.16 percent stake in Silicon Integrated, rose 4.2 percent to NT$22.4. UMC promised to provide capacity backup to Silicon Integrated in the Intel deal, the newspaper said.

Surging oil prices hurt China Airlines (華航), the nation's largest carrier, which fell 0.3 percent to NT$16.25, while EVA Airways Corp (長榮) dropped 2 percent to NT$14.75.

Securities stocks were stronger on analysts' expectations that the stock market would perform better in the second half of the year compared to the first half.

"As the economy is on a recovery track, this should be good for our exports, thus auguring well for our stock market," said Sarah Hung, a Fubon Securities banking analyst.

Polaris Securities Co (寶來證券) rose 0.3 percent to NT$16.05.