Sat, Nov 17, 2007 - Page 11 News List

Stocks close lower on fears of weaker spending in the US

AP AND AFP , TAIPEI

Shares closed 1.58 percent lower yesterday after a fall on Wall Street and due to worries that weaker US consumer spending could hit Taiwanese export growth, dealers said.

The TAIEX fell 140.59 points to 8,764.82 after trading between 8,678.55 and 8,790.57 on turnover of NT$113.83 billion (US$3.52 billion)

Decliners outnumbered advancers 1,545 to 561, with 296 stocks unchanged.

For the week to Nov. 16, the weighted index closed down 206.10 points or 2.3 percent. It had fallen 3.26 percent a week earlier.

Average daily turnover stood at NT$128.83 billion, compared with NT$153.92 billion a week ago.

Tu Jin-lung (杜金龍), chairman of Grand Cathay Investment Services (大華投顧), said that the weakness of international markets had helped to keep the mood downbeat.

"Asian markets reacted to the US woes, and the Taipei market was no exception," Tu said.

Political uncertainty had also unsettled investors, he said.

Taiwan's high court is set to rule on an appeal over a disputed mayoral election.

On the foreign exchange market, the New Taiwan dollar ended the day at NT$32.336 against the US dollar, down NT$0.038 from the previous close of NT$32.298. Turnover was US$957.5 million on the Taipei Forex Inc.

The yen will be a key focus for looking at the market's performance next week, said Daniel Liu of Ta Ching Securities (大慶證券).

"If the yen depreciates, it's good for stocks," he said, because funds would flow to the US and boost its markets, which would lift Asian markets.

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