Stocks flatten over concern on interest rate hike in the US

Share prices closed flat yesterday on caution ahead of a US decision on interest rates, while some investors opted to take some profits before the year-end book-closing, dealers said.

They said investors, widely anticipating the US Federal Reserve will hike rates, were more focused on the accompanying outlook for the US economy.

The TAIEX closed down 5.11 points or 0.09 percent at 6,261.18, on turnover of NT$90.28 billion (US$2.69 billion).

Decliners beat gainers 543 to 438; 226 stocks were unchanged.

"Trading was quiet, given an absence of appealing leads for traders to make any aggressive moves in the market," said Alex Huang, assistant vice president at Barits International Securities (倍利證券).

There was uncertainty over foreign investors' next trading stance and expectations that fund managers may take it slow towards the year-end holiday break, Huang said.

The tourism sector fell 3.7 percent as it remained unclear whether the government would ease its China policy after the Dec. 3 elections and allow more Chinese tourists here, he said.

Quanta Computer Inc (廣達) closed up NT$0.20 at NT$50.20 after it reportedly secured a contract manufacturing order from Royal Philips Electronics NV for television sets fitted with thin-film-transistor liquid-crystal-display screens.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) gained NT$0.80 to NT$62 on the expanded agreement between it and NASDAQ-listed Silicon Storage Technology Inc to provide TSMC customers with advanced deep sub-micron embedded flash technology.