Taiwan stocks closed a touch lower on Friday, retreating from a 40-month high as profit-taking on financial shares like heavyweight Cathay Financial offset gains in technology shares.
The TAIEX shares index ended down 0.24 percent at 6,665.54, after gaining 13.4 percent since the beginning of the year.
"Overall, the market is still seen with a firming trend as no matter who wins the elections, Taiwan stocks are likely to rise further on solid economic fundamentals both locally and globally," said George Hou, president of JF Asset Management (Taiwan), which manages US $3.7 billion of funds.
Taiwan will hold presidential elections on March 20. "Financial, industrial and electronics shares are the three major focuses this year, and they will take turns to lead the market," added Hou. Cathay Financial Holding, Taiwan's largest listed financial group, fell 1.61 percent to T$61.0.
Chang Hwa Bank, the island's sixth largest bank by assets and a reported take-over target, lost 0.44 percent to T$22.50.
But CMC Magnetics Corp, Taiwan's largest maker of optical compact disks, jumped the daily seven percent limit to T$28.40 after saying on Friday it expected to earn a profit of T$4 per share this year due to rising global demand. Rival Ritek was also limit up to T$25.0.
Taiwan was slated to issue its fourth quarter economic report and forecasts for 2004 later on Friday. The government was expected to announce the economy in the fourth quarter grew at the fastest pace in five, and raise its 2004 growth forecast.
Shares in display screen manufacturers continued to shine, helping the tech sector shrug off a 1.47 percent drop in the tech-laden Nasdaq composite index on Thursday.
Comments
Comments are closed.