950819

Share prices

down, dollar

up in Taiwan

TAIPEI: Taiwan share prices closed sharply down in Saturday's short session as profit-taking emerged after four straight days of index rises, brokers said.

The index closed down 87.53 points or 1.81 percent at 4,742.81. Turnover was a modest T$21.6 billion.

The market opened down and stayed lower throughout the session as investors appeared uninterested in chasing prices up, deciding instead to wait for the market's next bull run, brokers said. "Caution was starting to set in yesterday, and it expanded into profit-taking today," said Lin Long-hsien of United Securities.

Textiles led the fall, losing 2.20 percent with Sinkong Spin going down T$1.20 or 5.85 percent to T$19.30. Papers fell by 2.08 percent and the heavily-weighted financials by 2.04 percent.

Brokers said political concerns such as China's missile and artillery exercise near north of Taiwan were no longer jolting market sentiment. "Unless something drastic happens, investors are reacting less to political news and the market is returing to economic fundamentals," Lin said.

Brokers expected the index to consolidate on Monday in a 4,700-4,800 range.

DOLLAR

The Taiwan dollar ended slightly higher against its US counterpart as local banks lost interest in buying US dollar on the expectation that the central bank would not let the Taiwan dollar depreciate, dealers said.

The rate ended at T$27.4350 in today's short session against Friday's T$27.4400 close. Turnover was a light US$82 million.

Dealers said the market expected that the central bank would hold the local currency above T$27.4500. "So the rate should stay stable for a while even if the US dollar continues its rise overseas," one dealer said.

T$27.40-50 was seen for Monday.-Reuter