Investors unsure of upside to local market

Taiwanese prices closed little changed yesterday in reduced trade as some investors cashed in on a previous two-day market rally, unconvinced of a further upside amid a lack of fresh leads besides Wall Street's gains on Friday, dealers said.

The TAIEX closed up 5.31 points, or 0.09 percent, at 6,123.92, off a high of 6,139.22 and a low of 6,090.78, on turnover of NT$80.67 billion (US$2.42 billion).

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and AU Optronics Corp (友達光電) fell as investors found little reason to buy up the blue chips to push the benchmark index even higher after last week's window-dressing for the third quarter, dealers said.

"Things seemed to have quietened down again after two consecutive sessions of solid gains, on expanded turnovers," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president who serves mainly foreign investors.

Investors to take a pause from chasing the market higher, awaiting fresh strong catalysts to push up the benchmark index further following the recent rebound from below 5,900 points, he said.

Reports the government will study easing the regulations on economic and trade dealings with China failed to give the stock market much of a boost ahead of more concrete steps to encourage investing in shares, he added.

TSMC down NT$0.50 at NT$52.80. Investors sold down their holdings by taking advantage of Friday's considerable net purchases by foreign investors and the company's stronger US Depositary Receipts on Friday.

United Microelectronics Corp (聯電), in contrast, extended a bull run by adding a further NT$0.45 to NT$21.75, on the back of another buyback program now underway.