Tue, May 30, 2006 - Page 11 News List

Bourse hampered by concerns over foreign investors


Share prices closed little changed yesterday as early gains propelled by Wall Street's gains on Friday gave way to lingering concerns about the stance of foreign investors, dealers said.

They said the technology sector benefited from a report that the Cabinet is unlikely to tax overseas investors on gains made on equities and that central bank Governor Perng Fai-nan (彭淮南) and Council for Economic Planning and Development Chairman Hu Sheng-cheng (胡勝正) oppose such a tax.

Asset-backed stocks, on the other hand, encountered profit-taking pressure following their previous strong showing.

The TAIEX closed down 0.63 points at 6,878.88, on turnover of NT$82.97 billion (US$2.59 billion). The index was in positive territory until minutes before the market closed, and hit an intraday high of 6,919.96.

Decliners outnumbered gainers 442 to 317, with 122 stocks unchanged.

Fubon Securities Co (富邦證券) senior vice president Frank Lin said there was a lack of fresh major leads coupled with thin turnover.

"There were no major factors to set the direction for Taipei stocks and the market was clouded by lingering concerns," he said.

Uncertainties about hedge funds' moves in Asia, US interest rates and inflation continued to cast a shadow over the local bourse, he said. Shares also ended lower because of today's futures settlement.

"The majority of the futures contracts were short on the index, so they sold shares, especially index heavyweights, on the spot market," said Bill Huang, a trader at KGI Securities Co (中信證券).

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