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Prices slump after threats to launch strike worry bourse

Share prices closed 1.02 percent lower yesterday on fresh political concerns as a mass protest against President Chen Shui-bian (陳水扁) in the capital continued, dealers said.

They said that while the demonstration calling for Chen to step down over allegations of corruption has been peaceful, the longer it goes on, the greater risk there was of trouble.

Companies targeting the domestic market in particular were undermined by worries over the impact on consumption from the current political uncertainties, they added.

The concerns overshadowed a further fall in oil prices, leaving the market vulnerable as the regional bourses were mostly weaker once again.

The TAIEX lost 68.15 points at 6,625.73, on turnover of NT$64.76 billion (US$1.97 billion).

Decliners led gainers 942 to 145, with 124 stocks unchanged.

First Taisec Securities Inc (一銀證券) manager Stanley Hsu said there were concerns that the anti-Chen protests could widen to involve strikes.

"Taiwan has not experienced politically driven labor strikes before ... that is a development that could significantly affect the economy," he said.

He said companies which rely on domestic demand seemed to have taken a hit.

Taiwan Semiconductor Manu-facturing Co (台積電) gained NT$0.40 to NT$56.70 while United Microelectronics Corp (聯電) lost NT$0.25 to NT$17.75.

AU Optronics Corp (友達光電) closed down NT$0.60 at NT$47.40 and Chi Mei Optoelectronics Corp (奇美電子) lost NT$0.85 to NT$39.20 after reports they might raise prices for 32-inch liquid-crystal-display (LCD) panels.
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