Taipei shares close weaker as global market concerns outweigh Ma verdict -UPDATE

Taipei shares close weaker as global market concerns outweigh Ma verdict -UPDATE

	Published : Tue, 14 Aug 2007 07:37 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - Share prices closed weaker after a see-saw session as lingering concerns over global market uncertainty outweighed news that Ma Ying-jeou, the presidential candidate of Taiwan's main opposition party Kuomintang (KMT), has been cleared of corruption charges.

The Taipei District Court today cleared Ma of charges that he misused more than 11 mln twd in expense accounts during his time as Taipei mayor from 1998 to 2006.

The verdict boosted the market, particularly companies having links with mainland China, in intraday trade as it was seen boosting Ma's chances in next year's elections and rekindling hopes for improved cross-strait relations.

However, the gains could not be sustained as global market and credit concerns came to the fore again toward the close, dragging the index down.

The weighted index closed down 27.97 points or 0.31 pct at 8,910.99, after moving in the range of 8,840.26 and 9,023.26. Turnover was 142.72 bln twd.

Tu Jin-lung, chairman of Grand Cathay Investment Services Corp, said investors chose to exercise caution as the US subprime mortgage loans situation and its fallout is yet to become fully clear.

'Some central banks have acted to counter credit issues, but it will take some time before conclusions can be made,' he said.

As investors are taking profit at every available opportunity, the gains driven by the court verdict on Ma could not be sustained, Tu said.

'Riding on the rally propelled by the Ma verdict, investors locked in profits,' given expectations of further consolidation in the local bourse, he said.

Tu said global developments will be crucial to Taiwan bourse in the near term.

Decliners outnumbered advancers 945 to 647, with 225 stocks unchanged.

A total of 32 stocks closed limit-up, while 21 were limit-down.

The steel sector was down 0.98 pct, electronics down 0.48 pct and petrochemicals down 0.43 pct.

The glass sector was up 5.02 pct, cement sector up 1.57 pct and financial sector up 0.35 pct.

The Taiwan dollar was at 32.965 to the US dollar, steady from the previous close.

Taiwan Semiconductor Manufacturing Co closed down 0.10 at 61.90 and United Microelectronics Corp fell 0.20 to 18.30.

Lite-On Technology Corp closed down 2.70 twd at 50.10 after announcing it has offered 5.20 eur per share in a cash bid for Finland's Perlos Corp, valuing the world's largest maker of mobile phone casings at around 277 mln eur. The offer price represents a 40.5 pct premium to the closing level of Perlos shares in Helsinki on Friday.

Quanta Computer Inc fell 1.00 to 55.00 as profit-taking eroded early gains driven by a report that it has secured orders from Acer Inc for four new models of notebook computers. Acer finshed up 0.40 at 65.40.

Yageo Corp rose 0.10 to 13.95 on a report that it is on the lookout for merger/acquisition targets in order to expand its presence in the US market and upgrade technology for making multi-layer ceramic capacitors (MLCCs).

Giantplus Technology Co was up 0.20 at 39.25 following a report that Chunghwa Picture Tubes Ltd is in talks with Giantplus over the possibility of forming a strategic alliance, including the prospect of taking a stake in the latter. Chunghwa Picture Tubes lost 0.04 to 9.29.

Among other stocks in focus, Taiwan Glass Industry Corp was limit-up 1.90 twd at 29.30, Taiwan Cement Corp added 0.55 to 42.35, Ruentex Development Co Ltd fell 1.50 to 38.50, Cathay Financial Holdings dropped 0.50 to 77.70 and Chen Shin Rubber shed 1.50 to 57.00.

adela.lin@afxasia.com

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