Tue, Sep 06, 2005 - Page 11 News List

Uncertainty over economy weighs down local stocks

AFP , TAIPEI

Taiwan share prices closed 0.28 percent lower yesterday as persistent economic concerns undercut early gains made on a continued technical rebound, dealers said.

They said despite a retreat in record high crude oil prices, the market remained uncertain given soaring energy costs and the potential impact of Hurricane Katrina on the global economy.

The TAIEX closed down 17.27 points at 6,098.78, off a high of 6,131.95 and a low of 6,094.00, on turnover of NT$58.14 billion (US$1.79 billion). Declines led gainers 504 to 373, with 164 stocks unchanged. A total of 13 stocks closed limit-up, while 24 were limit-down.

The rubber sector was down 2.29 percent, financials fell 0.47 percent and electronics 0.23 percent while the food sector was up 1.17 percent.

The New Taiwan dollar rose against the US dollar, gaining NT$0.107 to close at NT$32.422 on turnover of US$793 million.

"Turnover was too thin to give the broad market any solid lift," said Frank Lin, senior vice president with Fubon Securities Corp (富邦證券).

The initial market rise continued Friday's technical rebound but the gains could not be sustained due to concerns that foreign investors may turn more cautious in light of a slowing US economy and the potential wider impact of Hurricane Katrina, Lin said.

United Microelectronics Corp (聯電) closed down NT$0.60 at NT$19.90, while Taiwan Semiconductor Manufacturing Co (台積電) lost NT$0.50 to NT$52.10.

Quanta Computer Inc (廣達電腦) rose NT$0.10 to NT$53.40 on a report that it will start assembling television sets at its Hungarian plant for Sampo Corp next year.

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