Thu, Jun 08, 2006 - Page 11 News List

Political doubts and concerns over US push TAIEX lower

AFP AND AP , TAIPEI

Share prices closed 1.75 percent lower yesterday, extending losses on continued concerns over the outlook for US interest rates and inflation, dealers said.

They said further losses overnight on Wall Street and persistent uncertainty over the future of President Chen Shui-bian (陳水扁) added to the negative tone.

The TAIEX fell 117.53 points to 6,612.74, the low for the day, on turnover of NT$82.22 billion (US$2.56 billion).

Decliners led risers 610 to 162, with 73 stocks unchanged.

"A mixed dose of negative leads both at home and overseas drove down the market further," said SinoPac Securities Corp (建華證券) assistant vice president Alvin Teng (鄧可欣).

As the market took a downturn, investors scrambled to sell to stop losses, though at the same time there was general reluctance to hunt for bargains just yet, he said.

The technology sector fell 2.3 percent overall, making it the worst-performing sector on the main board.

AU Optronics Corp (友達光電) fell by the 7 percent daily limit to NT$41.85, after the company cut its forecasts for second-quarter shipments and for the average selling price of its television panels because of excess inventory.

Taiwan Semiconductor Manufacturing Co (台積電), the world's largest contract chipmaker by revenue, fell 1.2 percent to NT$60.1. Its smaller rival, United Microelectronics Corp (聯電), dropped 2.1 percent to NT$19.1.

High Tech Computer Corp (宏達電) was down 4.40 percent at NT$870.00, extending its recent downturn due to disappointment over its planned acquisition of Dopod Corp (多普達).

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