Stocks dropped to their lowest close in more than four months. China Steel Corp (
Stocks also fell after several local newspapers said investors didn't settle about NT$2 billion (US$58 million) worth of trades in Chou Chin Industrial Co (久津實業), a beverage maker. The stock settlement default is the largest in almost five years.
"Bush seems insistent on going ahead with the war," said James Tu (涂國華), who manages about NT$1 billion of equities at President Investment Trust Corp (統一投信).
"The Chou Chin's case is also hurting market confidence," Tu said.
Tu's fund is three-fifths com-prised of electronics shares, about a quarter in China-related companies and the rest in other shares such as shipping companies. He said he added some shares of flat-panel display makers last week on news about a shortage.
The TAIEX lost 46.85, or 1.1 percent, to close at 4,350.59. That's its lowest since Oct. 17. Decliners outnumbered risers 556 to 98, while 86 issues closed unchanged. Volume amounted to NT$39.40 billion (US$1.13 billion). The index fell four out of five days this week, losing 1.8 percent.
MSCI Taiwan futures for March delivery in Singapore declined 0.8 percent to 184.60, while the Tai-wan Futures Index lost 1 percent to 4,355.
"Share prices are still seeking their bottom ... to test 4,200 points in the first half of next week," said Jack Tam, an analyst with Yuanta Core Pacific Capital Management Co (元大京華投顧).
"A mild technical rebound is expected in the second half. But, the strength is unlikely to be significant as many investors have retreated to the sidelines," Tam said.
Stocks which have a better chance of rebounding include Tai-wan Semiconductor Manufacturing Co (台積電) and United Microelectronics Corp (聯電), Formosa Plastics Corp (台塑), Nan Ya Plastics and China Steel, he added.
China Steel dropped NT$0.90, or 4.3 percent, to NT$19.90. Nan Ya Plastics, the nation's No. 1 plastics maker, declined NT$0.70, or 2.1 percent, to NT$33.40.
Mobile-phone manufacturer BenQ Corp (明基電通) rose NT$0.70, or 1.9 percent, to NT$38.50.
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