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TAIEX lower over avian flu fears

Share prices closed 0.16 percent lower yesterday as government plans to bolster the market offset an early weakness from Wall Street's overnight losses and fears about bird flu, dealers said.

Among the government's proposed stimulus measures are a relaxation of stock buy-back regulations and more room for insurance companies to invest in equities.

The TAIEX closed down 9.24 points at 5,738.76, on turnover of NT$67.15 billion (US$2 billion).

The key electronics sector lost 0.33 percent but the tourism sector was up 5.77 percent after a report citing Mainland Affairs Council Chairman Joseph Wu (吳釗燮) as saying that the government may allow more visitors from China soon.

"Alongside the stimulus measures, government funds must also have been buying into the market," SinoPac Securities (建華證券) assistant vice president Alvin Teng (鄧安瀾) said, adding that government funds might have played a role in a late-session upturn on Thursday and trimming an otherwise steeper decline yesterday.

"All in all, there is no justification for an immediate rally while the market might try and establish a bottom for the near term," he said.

Taiwan has a lot to worry about -- an uncertain Wall Street, continuing pressure on the NT dollar, concerns over a possible bird flu pandemic and the nation's political stalemate, he added.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was down 2.2 percent to NT$49.20 and United Microelectronics Corp (UMC, 聯電) fell 1.8 percent to NT$19.05, both tracking overnight losses in shares.

Flat panel display makers AU Optronics Corp (友達光電) closed up 1.0 percent to NT$38.70, and Chi Mei Optoelectronics Corp (奇美電子) added 0.8 percent at NT$31.65.
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