Wed, Aug 16, 2006 - Page 11 News List

Local bourse remains largely unchanged

STATIC The electronics sector made gains, but these merely offset losses in financial and construction shares after Cathay Pacific tightened its property lending policy

AFP , TAIPEI

Share prices closed little changed yesterday, with gains by electronics on the back of liquidity-driven interest offsetting weakness in financial and construction stocks, dealers said.

They said Cathay Financial Holding Co's (國泰金控) decision to tighten lending in property weighed on sentiment toward construction and property.

The TAIEX closed up 3.23 points or 0.05 percent at 6,615.13, on turnover of NT$68.60 billion (US$2.09 billion).

Mega International Investment Services Co (兆豐投顧) assistant vice president Alex Huang said he expected the market to consolidate.

"There were expectations of technical pressure at around 6,600-6,650 points ... preventing the index from getting an immediate boost," he said.

"But the US Fed's earlier decision to leave interest rates unchanged paves the way for the inflow of foreign capital," he said.

Investors are pinning their hopes on further foreign capital inflows into the region, evidenced by position-building by foreign investors in the local bourse recently, he added.

Cathay Financial closed down NT$1.80 at NT$66.50.

AU Optronics Corp (友達光電) gained NT$0.70 to NT$50.50 and Chi Mei Optoelectronics Corp (奇美電子) rose NT$1.45 to NT$40.25 on expectations of panel price hikes amid a report of a supply cut by South Korean peer BOE Hydis Technology.

Quanta Computer Corp (廣達電腦) rose NT$0.55 to NT$46.05, after the world's leading notebook computer maker said it has no plans to merge with, or be acquired by, Hon Hai Precision Industry Co (鴻海精密).

Hon Hai fell NT$0.50 to NT$214.50.

BenQ Corp (明基) rose NT$0.55 to NT$21.35, after a report that it planned to raise a total of NT$25 billion to prevent a hostile takeover.

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