Wed, Aug 08, 2007 - Page 11 News List

Shares drop over sub-prime issues

AFP , TAIPEI

Taiwan share prices closed down 0.89 percent yesterday as lingering concerns over the US sub-prime mortgage issue triggered late-session selling, dealers said.

They said this reversed earlier gains made on Wall Street's overnight rally and a drop in global crude oil prices. Investors also chose a cautious approach ahead of the US Federal Reserve's meeting on interest rates scheduled for last night.

The weighted index closed down 79.42 points at 8,862.31, off a high of 9,068.83, on turnover of NT$146.82 billion (US$4.45 billion).

Decliners outnumbered gainers 936 to 634, with 192 stocks unchanged. A total of 27 stocks closed limit-up, while 28 were limit-down.

Mega International Investment Services Co (兆豐國際投顧) manager Tank Hung said that short-term investors used the US credit issue as an excuse to pressure the local bourse lower.

Having built their portfolios at 8,700-8,800 points, investors put pressure on the local market in the hopes that the correction would be completed sooner rather than later so as to make early returns, he said.

He expects the local market to manage support around the 8,700 points level on the benchmark index due to still ample liquidity.

BenQ Corp (明基) lost NT$0.30 to NT$16.75 as late selling wiped out early rises backed by news that its consolidated sales last month amounted to NT$12.6 billion, up 8 percent month-on-month. 

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