TAIEX declines as investors move out of property stocks

Share prices closed 0.47 percent lower yesterday as losses in real estate-related stocks outweighed gains in the technology sector, dealers said.

They said construction and steel stocks were hit by China's new measures to rein in its property sector while steep falls in Tatung Co (大同) also hurt sentiment.

Trading was cautious due to today's Dragon Boat holiday.

The TAIEX closed down 31.93 points at 6,846.95, on turnover of NT$106.55 billion (US$3.33 billion).

Declines led gains 525 to 271, with 81 stocks unchanged.

Dealers said there was a clear move out of real-estate linked stocks, including construction and steel companies after China announced measures to cool its overheating property market.

The impact, however, would appear to be mostly psychological, said Alex Huang, an assistant vice president with Barits International Securities (倍利國際證券).

Huang said the main drivers for the local market remain how the global bourses fare and the stance of foreign investors.

The tech stocks, however, attracted fresh funds after their recent losses.

Taiwan Semiconductor Manu-facturing Co (台積電) added 0.2 percent to NT$60.30 while rival United Microelectronics Corp (UMC, 聯電) rose 2.0 percent to NT$20.20.

Tatung closed down 6.9 percent at NT$14.10 after a report that a UMC unit had decided against buying any more shares in the firm to stop speculation that UMC is seeking control of Tatung.

Goldsun Development & Construction Co (國產建設) was limit-down at NT$13.75 and Cathay Financial Holdings (國泰金控) fell 2.9 percent at NT$70.40.