Tue, Feb 06, 2007 - Page 11 News List

Investors remain on the sidelines ahead of Q4 results


Share prices closed little changed yesterday following a mixed performance by Wall Street on Friday and on caution ahead of results announcements by many key local firms this week, dealers said.

They said many investors avoided building positions due to the long Lunar New Year holiday, which will see the market closed from Feb. 15 to 23.

Several tech firms, including United Microelectronics Corp (聯電), AU Optronics Corp (友達光電), Advanced Semiconductor Engineering Inc (日月光半導體) and Chi Mei Electronics Corp (奇美電子) will report their fourth quarter results this week.

The weighted index closed up 6.09 points at 7,783.12, off a low of 7,772.05 and a high of 7,823.94 on turnover of NT$75.39 billion (US$2.29 billion).

The tourism and transport sectors outperformed, gaining 5.52 percent and 3.06 percent, respectively, on comments by a government official that he is optimistic that a pact with China on cross-strait charter flights and allowing more Chinese tourists could be reached soon.

"As has been expected by many, shares went nowhere with investors staying sidelined amid a pervasive sense of caution ahead of a long string of holidays," said Oliver Fang, a Yuanta Core Pacific Securities (元大京華證券) assistant vice president who serves mainly foreign investors.

Investors who might have wanted to offload holdings must have done so already, he said.

Meanwhile, there are still seven trading sessions left before the holiday for those who want to take bets on a post-holiday upswing, he said.

"Such last-minute purchases are likely to make a stronger presence next week," he said.

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