Sat, Feb 21, 2009 - Page 11 News List

Stocks close 2.03% lower following Wall Street loss

AFP , TAIPEI

Taiwanese stocks closed down 2.03 percent yesterday after US stocks fell to a six-year low overnight, dealers said.

The weighted index lost 91.93 points to close at the day’s low of 4,436.94, off a high of 4,513.99, on turnover of NT$59.85 billion (US$1.72 billion).

Losers outnumbered gainers by 1,386 to 258 with 155 stocks unchanged.

The market opened down 0.99 percent with bellwether electronic stocks in focus amid the weakness of their US counterparts, and the downside extended until the end of the session as selling spread to other sectors, dealers said.

WEAKER MARKET

Yesterday’s downturn has made the market technically weaker, Concord Securities (康和證券) analyst Allen Lin said.

“Moreover, market sentiment has turned sour after investors witnessed the heavy losses. Few can be sure when the market will ride out the current economic meltdown at home and abroad,” Lin said.

Lin said the electronic sector faced stiffer resistance following recent technical rebounds.

“I suspect that foreign institutional investors kept cutting their high tech holdings. Such correction is possible to continue,” Lin said.

CONTINUED CAUTION

Lin said that investors should remain cautious about possible further losses by financial stocks as the domestic economy deteriorates.

“Investors are afraid that more business closures will boost bank bad loans and undermine banks’ profitability,” he said.

For the week, the weighted index fell 153.56 points or 3.35 percent after a 2.67 percent increase the previous week. Average daily turnover stood at NT$65.84 billion, compared with NT$73.60 billion a week earlier.

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