TAIEX 0.37 percent lower on bird flu, NT dollar worries

Share prices closed 0.37 percent lower yesterday, with sentiment hit by a continued weakening of the NT dollar and nervousness about a possible bird flu outbreak, dealers said.

They said there was no lead to be found in a weaker Wall Street performance on Friday, leaving investors with no support and the market slipping further.

The weighted index was down 21.48 points at 5,717.28, off a high of 5,766.35 and a low of 5,713.63, on turnover of NT$56.97 billion (US$1.70 billion). The food sector was down 1.39 percent and financials fell 1.38 percent. The electronics sector was little changed.

Bucking the trend, the very volatile tourism sector was up 5.94 percent ahead of a scheduled visit here later this week by Shao Qiwei (邵琪偉), director of the China National Tourism Administration and chairman of the China Tourism Association.

Concerns over bird flu and a weaker Wall Street combined with fears that foreign investors remain major sellers, as evidenced in the local currency's losses, said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president who serves mainly foreign investors..

United Microelectronics Corp (聯電) was down NT$0.20 at NT$18.85, extending its decline on a sell-off by foreign investors on Friday. Taiwan Semiconductor Manufacturing Co (台積電) was up NT$1.10 at NT$50.30 on expectations that the company will later this week report a substantial sequential earnings increase for the third quarter.

AU Optronics Corp (友達光電) was up NT$0.45 at NT$39.15 on positive expectations about its third-quarter earnings, while Chi Mei Optoelectronics Corp (奇美電子) was down 0.05 at 31.60.