Share prices closed 1.29 percent lower yesterday, with the benchmark index falling below 7,000 points in the wake of Wall Street's retreat on Friday on worries about the US economy, dealers said.
Concerns about the US economy's prospects prompted investors to cash out of their holdings, even though some technology bellwethers have released positive third-quarter earnings results and fourth-quarter guidance, they said.
The weighted index closed down 91.54 points at 6,995.20, after moving between 6,995.10 and 7,050.05, on turnover of NT$71.43 billion (US$2.15 billion).
"Our market readily followed Wall Street's lead, but it was hardly justified to speculate on a decisive turnaround in either market," said SinoPac Securities (永豐金證券) assistant vice president Alvin Teng (鄧可欣).
While the US economy has shown signs of losing steam, the situation may not prove that drastic and should still support a largely bullish sentiment for stocks, he said.
That is, there is little to worry about regarding the local bourse, so long as US equities are spared consecutive big losses in the near term, he added.
Taiwan Semiconductor Manu-facturing Co (
Acer Inc was down NT$0.80 at NT$61.00, while Compal Electronics Inc (
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