Share prices closed 0.16 percent lower yesterday as profit-taking emerged to reverse early gains driven by Wall Street's positive overnight performance, dealers said.
They said the market lacked conviction at these levels and investors clearly preferred to take some profits rather than push prices too far ahead.
The TAIEX fell 10.18 points at 6,673.75, on turnover of NT$94.29 billion (US$2.91 billion).
Decliners led gains 584 to 422, with 171 stocks unchanged.
"There was not enough enthusiasm about pushing the upside as too many investors were ready to pocket their gains," SinoPac Securities Corp (建華證券) assistant vice president Alvin Teng (鄧可欣) said.
An immediate contraction in turnover deprived the market of the momentum needed to help it through 6,700 points, he said.
"For those who monitor market charts, a pull-back to around 6,400-6,500 points, or the 72-day moving average for the benchmark index, seems increasingly possible," he said.
Teng said people currently lack the confidence to buy technology bellwethers due to uncertainty over whether seasonal weakness in the current quarter may extend into the second quarter.
Against rotational interest in non-tech industrials, investors continued positive on United Microelectronics Corp (UMC,
UMC was up NT$0.30 at NT$19.10 while Taiwan Semiconductor Manufacturing Co (台積電) was down NT$0.70 at NT$61.70.
Quanta Computer Inc (
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