Share prices fall over campaign to topple president

Share prices closed 0.37 percent lower at the day's low yesterday after a rebound following Wall Street's overnight gains fizzled, dealers said.

They said lingering concerns over opposition efforts to force President Chen Shui-bian (陳水扁) to step down before the end of his term had returned to haunt investors, resulting in the lower close.

The weighted index closed down 24.42 points at 6,526.22, off a high of 6,600.94, on turnover of NT$59.50 billion (US$1.81 billion).

Dealers said the market opened firmer in a reflex reaction to closing gains on Wall Street and following yesterday's slump on the local bourse, but the advance lacked follow-through and soon gave way to caution.

Although the political campaign led by Shih Ming-teh (施明德), former chairman of the Democratic Progressive Party, to urge Chen to resign has yet to finalize a date to launch a sit-in protest in front of Chen's office, it may not take long for the action to be carried out, they said.

"Political factors grabbed the market's spotlight this week and such uncertainties will continue to be the main variable next week," said Johnny Lee, a manager with President Securities Corp (統一證券).

He said no other major trading factors to explain the day's share price movement besides concerns over local political developments.

Taiwan Semiconductor Manufacturing Co (台積電) rose NT$0.10 to NT$57.00, while United Microelectronics Corp (聯電) was NT$0.10 lower to NT$18.25.

BenQ Corp (明基) closed limit-down at NT$18.95 and ProMOS Technologies Inc (茂德科技) fell NT$0.05 to NT$12.95.