Tue, May 16, 2006 - Page 11 News List

Downturn on Wall Street unnerves TAIEX investors

AFP , TAIPEI

Taiwan share prices closed 1.41 percent lower yesterday on profit-taking led by large-cap stocks as investors reacted nervously to weakness on Wall Street on Friday, dealers said.

They said the Wall Street downturn, sparked by fresh concerns over the outlook for the dollar and interest rates, hit the region as a whole and Taipei in the event got off relatively lightly compared with some markets.

The weighted index lost 102.61 points at 7,176.35, after trading between 7,167.03 to 7,240.92, on turnover of NT$123.37 billion (US$3.92 billion).

"Wall Street's falls Friday and weak regional shares today convinced investors here to sell further," said Samson Chueh, assistant vice president with Fuhwa Securities Corp (復華證券).

"The depreciation in the local currency also raised concerns over foreign investors' stance," he said.

The New Taiwan dollar closed at 31.648 against the US dollar, down from the previous close of 31.398.

Dealers said there was still room to lock in profits following a recent index rally by more than 1,000 points. Chueh said foreign investors' next move will be key to the prospects of the local bourse going forward.

Taiwan Semiconductor Manufacturing Co (台積電) closed down NT$1.70 at NT$63.20 and United Microelectronics Corp (聯電) fell NT$0.30 to NT$20.30 following their weak American Depositary Shares (ADS).

Hon Hai Precision Industry Co (鴻海精密) fell NT$6.50 to NT$220.00 and MediaTek Inc (聯發科技) closed down NT$10.00 at NT$390.00, while High Tech Computer Corp (宏達電子) was up NT$30.00 at NT$1,115.00.

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