Wed, May 10, 2006 - Page 11 News List

Profit-taking pressure keeps lid on local bourse

AFP , TAIPEI

Share prices closed 1.14 percent lower yesterday, led by financial stocks in continued heavy trade, as investors took profits following recent strong gains, dealers said.

The weighted index lost 85.11 points at 7,388.94, off a low of 7,364.19 and a high of 7,476.07, on turnover of NT$160.78 billion (US$5.12 billion).

The cement sector was down 2.70 percent, financials down 2.08 percent and textile down 1.68 percent.

The construction sector was up 2.38 percent and paper up 1.65 percent.

"The market had scored gains of more than 1,000 points; mounting profit-taking pressure is more than understandable," said Alex Huang (黃國偉), assistant vice president with Barits International Securities (倍利國際證券).

He said institutional investors locked in profits following Monday's move by individual investors to boost their portfolios through margin trading.

Financial and some old-economy stocks were hardest hit by yesterday's profit-taking pressure, but electronics also failed to attract rotational interest given lingering worries over forex losses resulting from a previous currency upswing, he added.

However, ample liquidity served to limit the market's downside, Huang noted.

Shinkong Financial Holding Co (新光金控) closed limit-down by NT$2.70 at NT$36.25 after disclosure of its wholly-owned unit Shinkong Life Insurance Co's (新光人壽) embedded value.

United Microelectronics Corp (聯電) fell NT$0.25 to NT$22.35 despite it booked a capital gain of NT$660.09 million from the sale of 1.72 million shares in MediaTek Inc (聯發科技) at an average price of 395.15 dollars per share on Monday.

Taiwan Semiconductor Man- ufacturing Co (台積電) dropped NT$1.40 to NT$68.

AU Optronics Corp (友達光電) shed NT$1.60 to NT$53.30, Chi Mei Optoelectronics Corp (奇美電子) dropped NT$1.55 to NT$44.95.

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