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Share prices close little changed after US Fed statement

Share prices closed little changed in rangebound trade yesterday after US Federal Reserve Chairman Ben Bernanke acknowledged the possibility of a US recession, dealers said.

They said trade was also cautious ahead of a long weekend. The market will be closed today for a public holiday.

The weighted index closed down 8.98 points or 0.10 percent at 8,596.34, after moving in the 8,621.59 to 8,555.62 range. Turnover was NT$129.27 billion (US$4.25 billion). Decliners led risers 1,221 to 905, while 343 stocks were unchanged.

A total of 21 stocks closed limit-down and 24 limit-up.

For the week to yesterday, the weighted index closed down 27.14 points or 0.31 percent after a 1.16 percent rise a week earlier. Average daily turnover stood at NT$136.61 billion, compared with NT$194.49 billion a week ago.

“We had a subdued session ahead of a long holiday,” said Arch Shih (施博元), an analyst with Taiwan International Securities Corp (金鼎證券).

Although external uncertainties are causing anxiety, investors refrained from big selling, he said.

He said some people were betting on an upswing when the market resumes trade on Monday.

Barring a major negative lead from the NASDAQ, local technology stocks could extend their positive showing as people rotate out of non-tech industrials and companies with large property holdings, Shih said. He said the technology sector may help the benchmark index breach the 9,000 points level soon.

That, in turn, could pave the way for some profit-taking at the end of the month, he said.
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