Sat, Jan 10, 2009 - Page 11 News List

Local shares decline 0.73 percent

4,500 THRESHOLD The market dipped below the key number shortly before rising to 4,502 points as bargain hunters reacted to news of an export decline last month

AFP , TAIPEI

Taiwanese share prices closed down 0.73 percent yesterday on poor market sentiment led by weakness in the domestic economy, dealers said.

The weighted index fell 33.05 points to 4,502.74, off a low of 4,472.45 and a high of 4,546.71, on turnover of NT$59.56 billion (US$1.80 billion).

Losers led gainers by 760 to 747 with 246 stocks unchanged.

For the week, the weighted index fell 88.48 points or 1.93 percent after a 3.75 percent rise a week earlier. Average daily turnover stood at NT$76.18 billion, compared with NT$42.38 billion.

The market yesterday opened down 0.46 percent on follow-through selling from Thursday’s 5.3 percent plunge and once fell below the key 4,500 point level as the disappointing export data for last month dragged down confidence, dealers said.

However, bargain hunting then helped the broader market to hold itself above 4,500 points before closing, they said.

“Investors used December’s record 41.9 percent year-on-year decline in exports as evidence to worry,” Capital Securities (群益證券) analyst Chen Yu-yu (陳育娛) said.

“Moreover, an unexpected 50-basis point interest rate cut by the central bank Wednesday further raised fears that the local economy is worse than expected,” Chen said.

Dealers said the export-oriented electronic sector was hard hit by worries about its bottom line amid deteriorating global consumption.

Chen said the market had turned technically weak after Thursday’s heavy losses.

“That’s why the market failed to stage a rebound today. I expect the weakness will continue into the next few trading sessions,” Chen said.

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