Stocks slid to a two-month low on concern earnings will slow because higher oil prices may boost costs and weaken spending. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) slumped.
``Higher oil prices will have an indirect impact on demand by putting extra cost pressures on a US economic recovery,'' said Jeremy Chang, who manages NT$850 million (US$24 million) in stocks at Cathay Securities Investment Trust Co (
PHOTO: AFP
TAIEX fell 89.57, or 2 percent, to close at 4457.75. More than nine stocks dropped for every two that rose.
Turnover was NT$46.51 billion, the lowest since Oct. 14, as investors took to the sidelines in the run-up to the New Year holiday, while some fund managers continued adjusting portfolios ahead of year-end book closing, dealers said.
"As tomorrow will be the last trading day for the year, investors tend to stay on the sidelines rather than making any aggressive moves," E. Sun Securities (玉山證券) analyst Stanley Hsu said.
"The thin turnover also high-lighted the concerns over the geographical issues, with political uncertainty adding pressure to the global economic outlook," Hsu said.
The pre-holiday caution was also the result of a lack of fresh leads. "Some were window dressing to polish the books but there was no convincing leads to persuade investors to build positions at the moment," Hsu added.
TSMC, shed NT$2.30, or 5.1 percent, to NT$43.20. The chipmaker sold more than three-quarters of its semiconductors to US customers in the third quarter.
Crude oil for February delivery rose as much as 1.4 percent to US$33.17 a barrel on the New York Mercantile Exchange, the highest since Dec. 1, 2000.
Rising prices prompted Chinese Petroleum Corp (中油), Taiwan's state oil company, to raise gasoline and diesel fuel prices by an average 1.6 percent starting Dec. 28.
Compeq Manufacturing Co (華通電子), the nation's largest maker of printed-circuit boards, fell NT$0.40, or 2.1 percent, to NT$18.40. The price of printed-circuit boards used in mobile phones is expected to fall 5 percent in the first quarter from the final three months of this year as shipments drop a fifth.
Elite Material Co (
Gold Circuit Electronics Ltd (
Kuoyang Construction Co (
Namchow Chemical Industrial Co (
South China Insurance Co (
Teco Electric & Machinery Co (
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