Stocks down as Wall Street hurts technology firms

Shares fell slightly yesterday, as technology heavyweights were driven down by declines in US stocks overnight.

The TAIEX fell 3.58 points, or 0.06 percent, to 6,427.84.

"Wall Street's losses overnight weighed on market sentiment," said Stanley Chou, an analyst at Barits Investment Service.

The local technology subindex slipped 0.1 percent after gaining around 2.8 percent in the previous two sessions.

Taiwan Semiconductor Manu-facturing Co (台積電) closed 0.3 percent lower at NT$62.3. But United Microelectronics Corp (聯電), the main board's most traded stock, gained 1.3 percent to NT$18.95 on foreign institutional demand.

The world's third-biggest flat panel maker by revenue, AU Optronics Corp (友達光電), finished 1.9 percent lower at NT$46.3, while smaller rival Chi Mei Optoelectronics Corp (奇美電子) slipped 0.2 percent to NT$41.2.

Despite the modest decline, analysts still expect the market to rise, as some companies typically buy their own shares as quarters draw to a close, they said.

Meanwhile, the New Taiwan dollar fell for a second day on speculation importers sold the local currency for their US dollar needs to settle month and year-end transactions.

"Importers are buying US dollars" after it weakened against the NT dollar, said Pory Shih, a trader at Chang Hwa Commercial Bank (彰化銀行). "They can get the US dollar at a relatively cheap price now."

The NT dollar fell NT$0.063 to NT$33.250 against its US counterpart, according to Taipei Forex Inc. The local currency dropped 4.5 percent this year, its first annual loss in four years.