Taiwan stocks fell 0.79 percent on Friday as concerns about a weekend protest over the disputed presidential election prompted investors to cash out of financial and transportation shares.
The main TAIEX ended at 6,620.36 points, retreating after an 8.8 percent rise over the past nine sessions. The rebound had helped the market recoup most of its losses immediately after the March 20 presidential election.
Turnover was modest at T$109.5 billion, only slightly higher than on Thursday's T$108.1 billion.
"Investors simply used the on Saturday protest as an excuse to take profits from recent gains," said Albert Lin, research vice president at Hotung Securities.
An estimated 200,000 people will march to the presidential office on Saturday to demand an independent inquiry into the shooting of President Chen Shui-bian on the eve of the election, which opposition parties say swung the vote.
A similar rally last weekend had turned violent with hundreds of protesters clashing with riot police as they tried to storm the presidential office.
First Financial Holding fell 1.87 percent to T$26.20, ignoring a 69 percent profit jump at its flagship banking unit. Shares of shipping companies also slumped on expectations that freight prices might fall due to oversupply, said Lin.
Shares of Yang Ming Marine, which is building more than 10 ships to add to its fleet, fell 3.66 percent to T$36.80. Heavyweight technology shares, however, were mixed.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's number one foundry, fell 1.64 percent to T$60.0 as near record high sales in March lent no cheer. But memory chip shares continued to shine on recent price hikes and strong demand, with Powerchip jumping 5.85 percent to T$38.0.
Buying was also active in shares of display screens makers that have benefited from higher screen prices. Chunghwa Picture Tubes rose 0.91 percent to T$22.20.
Smaller rival Quanta Display, the market's most active stock, jumped 2.66 percent to T$27.0. Both stocks have risen more than 55 percent so far this year.
Foreign investors bought a net T$5.25 billion in Taiwan stocks on Thursday, bringing total net buying over the past four sessions to T$22.57 billion.
The over-the-counter TAISDAQ index rose 0.58 percent to 154.03, while April TAIEX index futures fell 0.84 percent to 6,625.
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