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TAIEX slips as investors remain on the sidelines

Share prices closed 0.50 percent lower yesterday, continuing weaker as investors chose to stay on the sidelines following further Wall Street losses, dealers said.

They said the tone remained negative overall while there was a bout of heavy futures-linked selling near the close by foreign investors looking to adjust positions ahead of the expiry of the October contracts.

The weighted index lost 28.21 points at 5,632.97, off a high of 5,690.98 and a low of 5,618.90, on turnover of NT$68.19 billion (US$2.03 billion).

Decliners led gains 592 to 373, with 181 stocks unchanged.

The financial sector lost 1.51 percent and electronics shed 0.46 percent.

SinoPac Securities (建華證券) assistant vice president Alvin Teng said the day had featured a real tug-of-war between several of the top technology stocks.

While Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and flat panel maker AU Optronics Corp (友達光電) gained ground, there was still heavy selling on United Mircroelectronics Corp (UMC, 聯電), he said.

Teng said the local bourse has been holding up but it could give way in the event of further weakness on Wall Street in the immediate term.

"In particular, if NASDAQ tests lows towards the 1,800 points level, that would definitely be a further shock wave for out technology shares, TSMC included."

TSMC closed up NT$0.80 at NT$50.40 as investors reacted positively to its in-line results for the third quarter to last month and on expectations for further sequential growth in both sales and earnings during the current quarter.

UMC was down NT$0.60 at NT$16.75, extending losses on a sell-off by foreign investors.

PC maker Acer Inc was down NT$4.70 at NT$67.

AU Optronics was up NT$0.70 at NT$39.75, extending gains on the back of better-than-expected third quarter results and positive guidance for the current quarter.

Chi Mei Optoelectronics Corp (奇美電子) was up NT$0.10 at NT$31.50 ahead of its third-quarter results due next Thursday.
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