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TAIEX up slightly higher after minor technical rebound

Share prices closed 0.15 percent higher yesterday in a slight technical rebound after recent losses but the key tech sector continued under pressure despite gains on Nasdaq overnight, dealers said.

The TAIEX closed up 8.96 points at 5,969.07, on turnover of NT$59.56 billion (US$1.78 billion). Average daily turnover was reduced to NT$64.48 billion during the week from NT$81.54 billion previously.

The financial sector was up 1.15 percent, while electronics fell 0.35 percent.

"Today's rebound was hardly exciting, as it was confined to financials and failed to attract a serious crowd of followers, as shown in the still low turnover," Jih Sun Securities Investment (日盛投信) deputy manager Wilson Lien, said.

The market outlook remains worrisome as technology majors, including makers of semiconductors and LCD panels, remain under pressure even after recent heavy losses, he said.

As such, the possibility of the benchmark index testing support towards its late-September low of about 5,894 points next week cannot be ruled out, he added.

The Farmers Bank of China (農民銀行) and Taiwan Business Bank (台灣企銀) were substantially higher after President Chen Shui-bian (陳水扁) told his administration that government officials and heads of government-controlled companies will be held responsible, if they fail to carry out financial reforms.

China Steel Corp (中鋼) was up NT$0.35 at NT$27.05, little affected by reports that its chairman Lin Wen-yuan (林文淵) resigned over a controversy involving more than NT$40 million in bonuses for the government-appointed executive.
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