Taipei shares lower on Wall St falls; bargain-hunting trims downside

Taipei shares lower on Wall St falls; bargain-hunting trims downside

	Published : Mon, 30 Jul 2007 05:19 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - Share prices extended their weakness into late morning trade albeit off early lows as bargain-hunting emerged to help trim losses earlier in the session, dealers said.

The market is broadly down, however, on follow-through selling in the wake of further weakness on Wall Street on Friday amid worries over US mortgage and corporate lending markets, they said.

Furthermore, there is still pressure on the local spot market due to selling ahead of the settlement of the Singapore futures contracts -- based on the MSCI Taiwan index -- which is due after the local bourse closes today, they added.

At 11.30 am, the weighted index was down 96.26 points or 1.05 pct at 9,066.02, after moving in a range between 9,006.78 and 9,136.45, on turnover of 129.82 bln twd.

'It is too early to say if we have got out of the woods yet,' said Yuanta Core Pacific Securities assistant vice president Oliver Fang.

Taipei is very unlikely to be an exception to the rule if Wall Street continues to lead global markets downwards due to broader worries such as US subprime mortgages and the unwinding of yen-centered carry trades picking up more steam, he said.

The best-case scenario for the local bourse for some time will be rangebound trade around a benchmark index level of 9,000 points, Fang said.

It would also be unrealistic to place bets on a sustainable upswing immediately after a 6.5 pct drop on the benchmark index in just three trading sessions, he added.

TSMC was up 0.60 twd at 64.60 while UMC was down 0.15 at 18.20.

High Tech Computer gained 7.00 to 610.00 after the company reported better-than-expected earnings for the second quarter to June, which more than offset a mediocre outlook for the September quarter.

ENE Technology rose 9.50 to 209.00 following a report that Asustek Computer and other investors are interested in buying its new shares via a private placement. Asustek Computer, meanwhile, gained 93.20.

AU Optronics climbed 1.10 at 55.90, extending its firmer tone after reporting stronger-than-expected earnings for the June quarter. Chi Mei Optoelectronics advanced 0.45 to 37.15 while Innolux lost 7.00 to 138.00.

(1 usd = 32.80 twd)

philip.wang@afxasia.com

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