Wed, May 17, 2006 - Page 11 News List

TAIEX loses ground on concerns over NT dollar

AFP , TAIPEI

Share prices closed 1.48 percent lower yesterday as early interest soon gave way to foreign investor concerns over a weakening Taiwan dollar, dealers said.

The TAIEX closed down 106.45 points at the day's low of 7,069.90, on turnover of NT$125.19 billion (US$3.94 billion).

Foreign investors were particularly concerned about lingering uncertainties on the direction of interest rates, raw material prices and inflation in major economies, dealers said.

"Foreign investor selling and the currency's [fall] apparently weighed on the local bourse," said Frank Lin, senior vice president at Fubon Securities Co (富邦證券).

"Sentiment was also undermined by weakness in regional markets following the NASDAQ's lead," he added.

Major global markets' moves will be crucial to the local stock market going forward, Lin noted.

Taiwan Semiconductor Manu-facturing Co (台積電) dropped NT$0.80 to NT$62.40, despite news that its shareholders approved a cash dividend of NT$2.50 per share plus a 3.0 percent stock dividend for last year.

United Microelectronics Corp (聯電) rose NT$0.05 to NT$20.40 after gains in its American Depository Shares.

ProMOS Technologies Inc (茂德科技) gained NT$0.15 to NT$12.20 after a report that the company is scheduled to start building a new 12-inch-wafer fabrication plant, citing company chairman Chen Min-liang (陳民良).

Construction of the new 12-inch-wafer plant in the central science park, a third for the maker of DRAM chips, will begin in June or July, with a monthly capacity of 40,000 wafers, the report said.

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