Profit-taking caps earlier gains made on corporate results

Share prices closed little changed in active trade yesterday as profit-taking capped early gains made on Wall Street's positive performance overnight and solid local corporate results, dealers said.

AU Optronics Corp (友達光電) and Advanced Semiconductor Engineering Inc (ASE, 日月光) both outperformed thanks to better-than-expected earnings for the fourth quarter to December, they said.

The weighted index rose 6.02 points at 6,630.13, off a low of 6,620.32 and a high of 6,700.86 on turnover of NT$105.27 billion (US$3.24 billion).

The overall market was negative, however, as declines led gains 645 to 381, with 191 stocks unchanged. Five stocks closed limit-down and 16 limit-up.

The electronics sector was up 0.39 percent while financials shed 0.26 percent.

"The market failed to break out of its rangebound consolidation," Jih Sun Securities Investment (日盛投顧) deputy manager Wilson Lien said, adding only some stocks had performed well.

Investors remain skeptical about the earnings prospects of technology companies in the seasonally weaker first quarter despite better-than-expected results for the final three months of last year, he said.

Taiwan Semiconductor Manu-facturing Co (台積電) was down NT$0.10 at NT$63, while United Microelectronics Corp (聯電) was unchanged at NT$18.20. After the market close, the world's second-largest contract chipmaker reported sales last month of NT$8.41 billion, down from NT$9.02 billion in December.

AU Optronics closed limit-up NT$3.30 at NT$51.80 while ASE Inc was limit-up NT$1.85 at NT$28.85.