Taiwan stocks closed a touch lower on Wednesday as disappointing results from US network equipment maker Cisco Systems weighed on tech shares like UMC, but industrial shares rebounded to offset losses.
The benchmark TAIEX index ended down 0.17 percent at 6,241.39 points, extending a two percent retreat from a 21-month high reached last week.
"Taiwan stocks tried to rebound but failed as institutional investors continued to be conservative.
Cisco added to the down beat sentiment," said Hotung Securities research vice president Albert Lin, who sees a narrow trading range for the near term.
Contract microchip maker United Microelectronics Corp, fell 1.65 percent to T$29.80. Just after the market closed, UMC posted a sevenfold rise in fourth quarter profit to T$6.73 billion, a three-year high.
However, leading resister maker Yageo bucked the tech downtrend, jumping 5.92 percent to T$17.90 on expected solid profits this year as it lagged recent gains in other tech issues.
Traditional industry shares like car makers, steel makers and transport firms attracted bargain hunting, with China Motor, the island's second largest car producer, closing up 3.33 percent to T$62.0. Rising stainless steel prices helped lift traditional industry benchmark China Steel 1.03 percent in active trade to T$29.40, leading a broad rise in steel-makers.
A regional shortage in dry bulk shipping capacity that has pushed freight rates to record highs also lifted shipping firms, with Evergreen Marine up 3.56 percent to T$34.90.
Foreign investors were net sellers of T$3.75 billion in local equities on Tuesday, bringing total net selling to T$7.83 billion over the past four sessions.
The day's overall turnover was active at T$117.2 billion, up slightly from Tuesday's T$113.6 billion.
The over-the-counter TAISDAQ index rose 0.25 percent to close at 134.66, while February TAIEX futures lost 0.38 percent to 6,235.
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