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Nervous investors let TAIEX follow Wall Street down

Taiwan share prices closed 3.54 percent lower yesterday to an eight-month low after sharp Wall Street falls at the end of last week, dealers said.

The weighted index closed down 287.23 points at 7,830.85, the lowest level since 7,788.14 on March 28.

Turnover was NT$115.82 billion (US$3.56 billion). Decliners outnumbered advancers 1,951 to 197, with 289 stocks unchanged. Three stocks closed limit-up, while 332 were limit-down.

Samson Chueh (闕山雄), an assistant vice president at Yuanta Core Pacific Capital Management (元大投顧), said US economic concerns and domestic uncertainty had unnerved investors.

"Besides continued worries over the US factor and political uncertainties at home, margin calls dragged down Taipei stocks further," he said.

Chueh said panic selling emerged after a rebound failed to develop in early trade.

The food sector was down 6.39 percent, transport shed 4.02 percent, electronics gave up 3.80 percent and financials lost 3.02 percent.

Apart from Wall Street weakness, growing political concerns ahead of Taiwan's parliamentary elections next month and presidential polls in March also weighed on sentiment, dealers said.

Signs that growing wage and tax demands in China are narrowing profit margins for local firms' China joint ventures added to the jitters, they said.

Chipmaker Taiwan Semiconductor Manufacturing Co (台積電) fell NT$0.30 to NT$59.50. United Microelectronics Corp (聯電) rose NT$0.15 to NT$19.30. Hon Hai Precision (鴻海精密) fell NT$6.00 to NT$171.00 and MediaTek (聯發科) lost NT$0.50 to NT$370.00.
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