TAIEX ends lower on election jitters, Wall Steet losses

Share prices closed 1.04 percent lower yesterday as losses overnight on Wall Street, combined with concerns about Saturday's local elections, prompted heavy profit-taking, dealers said.

They said there was typically heavy futures-led selling ahead of the expiry of November contracts on the day.

The TAIEX lost 64.33 points to close at 6,139.51, on turnover of NT$83.51 billion (US$2.49 billion).

Yuanta Core Pacific Securities (元大京華證券) assistant vice president Oliver Fang said some investors with positions in both the spot and futures markets tried to maximize their returns by selling down their shares.

"Few [people] expect a decisive downturn anytime soon. Instead, many investors actually expect a return to the upside when the political uncertainty [of the elections] is out of the way next week," he said.

Taiwan Semiconductor Manufacturing Co (台積電) ended 2.9 percent lower at NT$57.8, while rival United Microelectronics Corp (聯電) was down 3.14 percent at NT$18.55. Both tracked weaker shares in New York.

China Airlines Ltd (華航) rose 0.33 percent to NT$15.35 after the carrier announced it has acquired a 20 percent stake in Hong Kong-based China Aircraft Services Ltd (CASL) for an undisclosed sum.

"With the new investment, China Airlines will not only be charged less for aircraft maintenance and ground services at Hong Kong airport but also stand to benefit as CASL moves further into the fast-growing mainland market," it said.

The statement did not disclose financial terms of the deal but a company spokesman earlier said it cost almost HK$60 million (US$7.7 million).