Shares fell slightly yesterday, in a correction from a one-month closing high the previous session, with financial companies dropping as unions resist the government's efforts to restructure the sector.
The TAIEX ended 0.1 percent lower at 6,103.42, after rising 1.4 percent last Friday.
"It's natural for the market to consolidate after Friday's big rally," said Derek Lam, a trader at Daiwa SMBC Cathay Securities.
About 2,000 bank union members gathered in Taipei on Saturday, threatening to strike in protest against government plans to merge state-run banks on fears over job losses. The rally followed the government's decision on Thursday to merge the Bank of Taiwan (台灣銀行) with the Central Trust of China (中央信託局).
As a group, financial shares dropped 0.87 percent.
Electronics shares rose 0.2 percent on hopes of strong shipments in the current quarter. Sales of consumer electronics, such as digital cameras and digital music players, usually rise ahead of Christmas.
The government last week raised its economic growth forecast for this year to 3.80 percent from its August prediction of 3.65 percent because of a strong global demand outlook. Its fourth-quarter GDP growth estimate is 5.28 percent.
Panel maker Chi Mei Optoelectronics (奇美電) rose 0.8 percent to NT$38.50 on institutional investor buying on expectations of strong demand for flat-panel TVs.
Its larger rival, AU Optronics (
Decliners outnumbered advancers 559 to 442, and 190 stocks ended flat.
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