Tue, Jan 24, 2006 - Page 11 News List

Wall Street losses exert negative effect on TAIEX

AFP , TAIPEI

Share prices closed 1.61 percent lower yesterday, with sentiment hit by the heavy losses seen on Wall Street on Friday after disappointing US corporate results and a spike in oil prices, dealers said.

They said the losses were made worse as turnover thinned ahead of the upcoming Lunar New Year holiday, with the market to be closed for a week starting Thursday.

The weighted index lost 104.66 points at 6,381.97, after trading between 6,373.63 and 6,417.72, on turnover of NT$74.38 billion (US$2.32 billion).

Decliners led gainers 1,007 to 122, with 98 stocks unchanged.

The construction sector was down 3.66 percent and the retail sector down 3.20 percent. Electronic shares were down 2.12 percent and financial stocks down 0.92 percent.

Fubon Securities (富邦證券) senior vice president Frank Lin said that the surge in oil prices has heightened concerns about their impact on the global economy.

"There were worries over supplies from Iran and Nigeria, while demand in winter has also raised concerns about the upswing in oil prices," he said.

He said the oil lead has triggered fears about the negative impact of high energy prices on the prospects for economies and consumption.

"The holiday mood here was another factor dampening sentiment in Taipei stocks," Lin added.

Taiwan Semiconductor Manufacturing Co (台積電) closed down NT$0.70 at NT$61.80 and United Microelectronics Corp (聯電) lost NT$0.25 to NT$17.90 after falls in their respective American Depositary Shares (ADSs).

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