Taiwan stocks fell to their lowest close in three weeks on Tuesday as Wall Street weakness and uncertainty ahead of the upcoming presidential election triggered selling in microchip heavyweights like TSMC.
The TAIEX finished down 0.70 percent at 6,589.72, extending a 5.7 percent retreat since hitting a 41-month closing high on March 4.
"The market succumbed to losses on US stocks in early trade but we still saw government funds buying stocks at market dips," said Tu Jin-lung, president of Grand Cathay Investment Services.
The stock closed up 0.87 percent at T$23.30 and has risen nearly 60 percent since the beginning of the year.
The broader index was still up 12 percent thus far in 2004.
The two stocks, which make up some 14 percent of Taiwan's total market capitalisation, were hurt by Nasdaq's 2.29 percent drop on renewed security fears after the Madrid bombings.
Turnover on the main exchange shrank to T$145.93 billion from T$170.3 billion on Monday, reflecting the cautious mood.
Among other major losers, Mega Financial Holding sild 2.18 percent to T$22.40 and Changhwa Bank gave up 1.4 percent to end at T$21.10.
But investors snatched up Fubon Financial Holding, which said last week it expected 2004 net profit to rise 14 percent over 2003. The stock finished up 3.03 percent at T$34.0.
The over-the-counter TAISDAQ index rose 0.14 percent to 147.55, while March TAIEX index futures fell 0.12 percent to 6,555.
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