Tue, Sep 12, 2006 - Page 11 News List

Profit-taking offsets early rally on TAIEX as protest dwindles

AFP , TAIPEI

Share prices closed with little change yesterday as profit-taking in late trade eroded an early rally made on Wall Street's gains and a further decline in world oil prices, dealers said.

The market welcomed the absence of violence or drastic political changes brought about by the demonstration against President Chen Shui-bian (陳水扁), they said.

Demonstrators have dwindled because of heavy rain. Many returned to work yesterday.

The weighted index was up 0.77 points at 6,693.88, off a low of 6,674.55 and a high of 6,802.84, on turnover of NT$79.75 billion (US$2.42 billion).

The bourse encountered profit-taking in late trade but prospects of improving corporate earnings supported the market, dealers said.

SinoPac Securities (建華證券) assistant vice president Alvin Teng (鄧可欣) said investors were encouraged by the peaceful conduct of the protests.

"Wall Street's lead, coupled with a downswing in oil prices, convinced investors to have a positive approach," he said.

Lower oil prices also stoked hopes of liquidity inflow into the stock market, he added.

Investors took profits in the late session, but buying interest in firms with strong earnings potential kept the benchmark index in positive territory, he said.

Taiwan Semiconductor Manu-facturing Co (台積電) fell NT$0.40 to NT$56.30 and United Microelectronics Corp (聯電) lost NT$0.05 to NT$18.00.

Powerchip Semiconductor Corp (力晶半導體) closed up NT$0.45 at NT$22.30, ProMOS Technologies Inc (茂德科技) gained NT$0.05 to NT$13.95, and Nanya Technology Corp (南亞科技) rose NT$0.10 to NT$23.15.

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