Wed, Aug 15, 2007 - Page 11 News List

Not-guilty verdict boosts shares, but not for very long

AFP , TAIPEI

Shares closed 0.31 percent lower yesterday as lingering concerns over global markets outweighed a not-guilty verdict for Chinese Nationalist Party (KMT) presidential candidate Ma Ying-jeou (馬英九), dealers said.

The verdict against corruption charges boosted the market in intraday trade as it was seen as enhancing Ma's chances in next year's elections and rekindling hopes for improved cross-strait ties, they said.

However, gains could not be sustained as global market and credit concerns came to the fore toward the close, dragging the index down.

The TAIEX closed down 27.97 points at 8,910.99 after moving in the range of 8,840.26 and 9,023.26. Turnover was NT$142.72 billion (US$4.32 billion).

Decliners outnumbered advancers 945 to 647, with 225 stocks unchanged.

Grand Cathay Investment Services Corp (大華投信) chairman Tu Jin-lung (杜金龍) said investors chose to exercise caution as fallout from the US subprime mortgage loans situation has yet to become fully clear.

"Some central banks have acted to counter credit issues, but it will take some time before conclusions can be made," he said.

As investors were taking profits at every available opportunity, the gains driven by the court verdict on Ma could not be sustained, Tu said.

Lite-On Technology Corp (光寶科技) closed down NT$2.70 at NT$50.10 after announcing it had offered 5.20 euros (US$7.06) per share in a cash bid for Finland's Perlos Corp, valuing the world's largest maker of mobile phone casings at around 277 million euros.

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