Taipei shares close lower as margin call fears erode Wall St-led gains - UPDATE |
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Wed, 28 Nov 2007 07:10
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TAIPEI (XFN-ASIA) - Sare prices closed lower as early gains spurred by a rebound on Wall Street gave way to fears of margin calls amid the local bourse's continuing volatility, dealers said.The US markets rallied following news of a 7.5 bln usd capital injection into Citigroup by an Abu Dhabi government entity, but the lead provided only short-term relief to local investors.Dealers noted that the index changed direction several times as bargain-hunting was offset by margin call worries and an uncertain global economic outlook.The weighted index closed down 99.50 points or 1.19 pct at the session's low of 8,276.26, after hitting a high of 8,440.12.Turnover was at 101.31 bln twd.Alvin Teng, an assistant vice president with SinoPac Securities, said the market's weaker close reflects investor caution in the face of global market and economic uncertainties.'While there was some bargain-hunting interest, investors were reluctant to chase prices much higher,' he said.Teng noted that some market participants cut positions due to margin call worries.He also noted a cloudy US economic outlook and lingering concerns over the subprime crisis.'Investors were uncertain about the US economic outlook, the impact on consumption and the consequences on Taiwan's exports-reliant economy,' Teng said.He said the index's failure to defend the annual moving average of around 8,468 points also points to technical pressure.Decliners outnumbered advancers 1,382 to 618, with 417 stocks unchanged.Five stocks closed limit-up, while 34 were limit-down.The construction sector was down 2.56 pct, electronics sector shed 1.27 pct, petrochemical fell 1.19 pct and financials lost 0.56 pct.The food sector was up 0.32 pct.The Taiwan dollar ended the morning session at 32.332 to the US dollar, compared with the previous close of 32.320.AU Optronics closed down 1.50 twd or 2.46 pct at 59.50 after it said it has yet to decide what technology to adopt for new production lines.Chunghwa Telecom rose 0.30 twd to 62.10 after news that it obtained exclusive rights to broadcast the 2008 Beijing Olympic games through Internet, Internet protocol television and cellular phones.Asia Cement ended down 1.65 twd or 3.84 pct to 41.35, reversing early gains triggered by a report that it plans to double its annual capacity in China by 2009.China Steel lost 0.55 twd to 42.00 despite news that its subsidiary Winning Investment purchased 7.68 mln common shares in the parent company at an average price of 39.76 twd per share between March 20 and yesterday.Chunghwa Picture Tubes shed 0.60 twd or 4.69 pct to 12.20 on news that the company will pay an unspecified amount in compensation to LG Philips LCD after settling a legal dispute over LG Philips' patented technology.Taiwan Semiconductor Manufacturing dropped 0.60 twd to 58.50 despite an ongoing share buyback program while United Microelectronics Corp lost 0.20 twd to 18.95.Among other stocks in focus, Hon Hai Precision Industry Co Ltd advanced 4.00 twd or 2.03 pct to 201.00, MediaTek declined 10.50 twd or 2.38 pct to 431.00, High Tech Computer gave up 15.00 twd or 2.52 pct to 580.00, Uni-President Enterprises added 0.50 twd to 37.50 and Shining Building Business Co fell 3.50 twd or 6.36 pct to 51.50.adela.lin@afxasia.comxfnal/xfnrcCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Taipei shares close lower as margin call fears erode Wall St-led gains 