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Tax and interest rate concerns keep trading sluggish

Share prices closed little changed yesterday as Wall Street-driven buying offset concerns over a new tax scheme and caution ahead of a US Federal Reserve decision on interest rates, dealers said.

They said foreign investors' selling in the previous session also weighed on sentiment, but that year-end window-dressing might have helped limit the downside.

The weighted index closed up 1.93 points or 0.03 percent at 6,266.29, off a high of 6,272.61 and a low of 6,206.83, on turnover of NT$83.77 billion (US$2.49 billion).

Decliners outnumbered gainers 583 to 436, with 183 stocks flat.

A total of 26 stocks closed limit-up, while 10 were limit-down.

The Legislative Yuan on Friday approved the bill on alternative minimum tax (AMT).

"There were worries over the possible negative impact of the new tax scheme on corporate earnings," said Frank Lin, a senior vice president at Fubon Securities Corp (富邦證券).

"The thin turnover indicated a cautious approach in the run-up to the US Fed's decision on interest rates," he said.

Taiwan Semiconductor Manufacturing Co (台積電) closed up NT$0.40 at NT$61.20, while United Microelectronics Corp (聯電) fell NT$0.25 to NT$18.80.

Thin-film-transistor liquid crystal display (TFT-LCD) panel makers were hit by a report that Dell Inc has reduced orders for panels for desktop monitors by 600,000 units for November and December, but technical support limited the index's fall, dealers said.

In the TFT LCD panel sector, AU Optronics Corp (友達光電) closed down NT$0.55 at NT$44.50, and Chi Mei Optoelectronics Corp (奇美電子) fell NT$0.90 to NT$38.80.
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