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TAIEX closes lower, extending losses as high-tech stay weak

Share prices closed 0.46 percent lower yesterday, extending losses as the key technology sector continued weaker after only cautious guidance on the flat panel industry from LG Philips LCD, dealers said.

The weighted index closed down 27.29 points at 5,960.11, off a low of 5,928.86, on turnover of NT$69.76 billion (US$2.08 billion).

Decliners led risers 619 to 322, with 162 stocks unchanged. Ten stocks closed limit-down and 8 limit-up. The electronics sector was down 1.01 percent but financials gained 0.36 percent.

SinoPac Securities Corp (建華證券) assistant vice president Alvin Teng (鄧可欣) noted that there was some select bargain-hunting but that was only to be expected after the recent sustained losses.

It was too early to conclude that the market has completed its correction even though the chances of a technical rebound may be growing, he said.

"The Taiwan dollar's continued weakness, above all, is certainly an ominous sign for equities," he said. "Its outlook is worrisome even into 2006 as the island's export momentum remains slack."

According to government figures, foreign investors have continued to take funds out, particularly from the equity market, with the net outflow put at US$280 million in the Sept. 9-Oct. 7 period.

Taiwan Semiconductor Manufacturing Co (台積電) was down NT$0.40 at NT$51.40 but United Microelectronics Corp (聯電) outperformed, adding NT$0.35 to NT$20.15 after news of fresh stock repurchases.

In the flat panel sector, AU Optronics Corp (友達光電) closed down NT$1.00 at NT$38.35 and Chi Mei Optoelectronics Corp (奇美電子) lost NT$0.25 at NT$34.20.
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