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TAIEX dips on fears falling consumption will affect exports

Share prices closed down 0.25 percent yesterday as investors focused on global economic weakness and shrugged off a Wall Street rebound that closed last week, dealers said.

The weighted index fell 10.56 points to 4,160.54, off a low of 4,081.66 and a high of 4,172.49, on turnover of NT$45.79 billion (US$1.37 billion).

The market opened lower, driven by fears that falling global consumption would hurt Taiwan’s exports, dealers said.

By closing, bargain hunting set in to help the market recoup most of the early losses.

“We are still in a bear market amid economic concerns. It is too early to say when Wall Street will stabilize and further volatility is very possible,” Grand Cathay Securities (大華證券) analyst Allen Lin said.

He said any rebound is expected to be capped at 4,400 to 4,500 points in the near future.

Electronics underperformed the broader market as the bellwether sector has been feeling the pinch of the global economic downturn, Lin said, adding that investors have raised the alert before the sector releases this month’s sales data.

Taiwan Semiconductor Manufacturing Co (台積電) fell 3.1 percent to NT$37.30 and United Microelectronics Corp (聯電) shed 3.9 percent to NT$7.

Stocks that rely on domestic demand outperformed the broader market on hopes that the planned issue of shopping vouchers will boost consumption, dealers said.

Far Eastern Textile (遠東紡織) gained 4.2 percent to NT$20, Uni-President Enterprises (統一) rose 1.9 percent to NT$31.90 and Wei-Chuan Foods (味全食品) rose 1.02 percent to NT$19.90.
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