TAIEX closes lower as investors remain uncertain

Share prices closed 0.66 percent lower yesterday as investors opted to take quick profits on Wednesday's sharp rebound rather than push stocks ahead after Wall Street's gains overnight, dealers said.

They said airline and tourism companies were down, reversing a rally fueled by news that Taiwan and China had agreed to expand cross-strait charter flights.

The TAIEX lost 42.62 points at 6,426.39, on turnover of NT$82.83 billion (US$2.54 billion).

"Investors would rather cash out after yesterday's upturn given a still uncertain market outlook," said Jih Sun Securities Investment (日盛投顧) deputy manager Wilson Lien.

He said that most bellwether technology companies have so far given few reasons to be optimistic about the second half at their annual general meetings.

In contrast, China plays and property shares look poised to stay in the spotlight given the prospects that the yuan might continue strengthening against the US dollar going forward, he added.

China Airlines (華航) shed NT$0.25 to NT$15.25 while EVA Airways (長榮) fell NT$0.50 to NT$13.80.

AU Optronics (友達光電) slipped NT$0.40 to NT$41.10 on news that it is cutting back on production of LCD panels in the second quarter, with the factory utilization target reduced to 90 percent from 95 percent seen previously.

Inventec Corp (英業達) was up NT$0.25 at NT$19.65. The company said that it and Fujitsu Siemens are still in talks on bilateral cooperation, responding to a report that it has secured an order from the latter for notebook computers.