Share prices closed 0.04 percent lower yesterday as futures-related trade and a technical correction offset early gains on Wall Street's rise amid easing oil prices, dealers said.
They said investors chose to sell down this month's futures contracts ahead of settlements tomorrow, which impacted on the broader market where steel stocks outperformed.
The TAIEX closed down 2.73 points at 6,242.40, on turnover of NT$64.59 billion (US$2.02 billion).
"Riding on the early gains, investors reduced positions, most likely to limit losses, amid technical pressure," said Barits International Securities (
"Investors were unnerved by yesterday's weakness that dragged down the benchmark index below 6,300 points."
Large-cap stocks were among the hardest hit, given the futures-related selling.
However, Huang said expectations of corporate/industrial improvements in the peak season should curtail the downward pressure.
"Support could be possible for the market below 6,200 points, given the medium to long-term technical support."
China Steel Corp (
EVA Airways Corp (長榮) rose NT$0.35 to NT$14.00 after its shares went ex-dividend, following a NT$0.4904 per share cash dividend and 0.9808 percent stock dividend.
An announcement by the Ministry of Transportation and Communications that domestic airlines can start to apply for approval to fly via China's airspace en route to other destinations was offset by a report that China is about to award fifth freedom rights to international carriers operating out of Shanghai's Pudong Airport.
EVA Airways peer China Airlines (
Hua Nan Financial Holdings Co (
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