Taiwan shares end down 0.61%, remain above 10,000 points

Taipei--Shares in Taiwan closed lower but remained above the 10,000-point mark on Wednesday as the market resumed trading following the four-day Dragon Boat Festival holiday.

The weighted index on the Taiwan Stock Exchange ended the day down 61.23 points, or 0.61 percent, at 10,040.72 before moving between 10,025.88 and 10,116.13 on turnover of NT$122.579 billion (US$4.06 billion).

The market opened down 6 points at 10,095.95 on thin turnover amid sluggish trading in the bellwether electronics sector as investors expressed concern over the outlook for the economy, but the main index then rose before pulling back from a session high and into negative territory.

Shares in Taiwan moved higher for four consecutive sessions last week to remain above the 10,000-point mark, before edging lower last Friday ahead of the Dragon Boat Festival holiday.

On Wednesday, almost all the major share categories lost ground, with large-cap stocks performing particularly badly.

In the electronics sector, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock on the local market, lost 1.93 percent to end at NT$203.00, while shares of iPhone and iPad assembler Hon Hai Precision Industry Co. (??dropped 1.44 percent to end at NT$103.00.

Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., closed down 1.76 percent at NT$4,750.00.

The financial sector ended 1.08 percent lower, dragged down mainly by large financial holding firms Cathay Financial Holding Co. (???and Fubon Financial Holding Co. (???), which fell 2.65 percent and 1.87 percent, respectively.

Bucking the downturn on the broader market, shares in the automobile and shipping sectors both rose 1 percent.

Foreign institutional investors sold a net NT$5.197 billion worth of shares on the main board on Wednesday, according to the Taiwan Stock Exchange.

Boryi Chien (???), a manager at Cathay Securities Co. (????), said the fall in the market following a global market pullback might be because foreign institutional investors reduced their holdings of local shares and concerns over the prospects for the local economy, as the government's overall monitoring index flashed a yellow-blue light in April, indicating sluggish growth.

Chien said that before global markets stage a rebound and foreign institutional investors boost their holdings of Taiwan shares, the Taiex is expected to fluctuate around the 10,000-point mark in the near future.

Source: Focus Taiwan News Channel