Taiwan stocks ended flat on Tuesday as support from heavyweight tech issues like AU Optronics Corp offset profit taking in financials, though the index faced heavy resistance at 6,000 points. The TAIEX share index ended with a slight gain for a second day, rising 0.13 percent to close at 5,945.20, after rising 4.0 percent last week. Turnover eased further to T$53.2 billion from Monday's sluggish T$63.6 billion.
"Financial shares are resting a little bit after a big wave of gains," said Hotung Securities research chief Albert Lin.
Investors cashed in gains in small- to medium-sized banks that had surged in recent weeks as they were seen as potential take-over targets. Taiwan Business Bank was the most active issue and fell 1.9 percent to T$12.90.
Large financial firms also lost ground, with Mega Financial Holding Co, Taiwan's second-largest listed financial company, retreating 0.44 percent to close at T$22.80.
"Upside pressure is really quite large. The market will need heavier buying from foreign investors if it is going to break through 6,000," Lin said.
Foreign investors have bought a net T$65 billion of Taiwan stocks in just under two weeks, with a focus on blue chip electronic issues and large-cap financials.
Display panel manufacturers rebounded from battered valuations on hopes of stabilising prices. AU, the world's third largest maker of flat screens for computers and televisions, rose 2.78 percent to T$37.0.
Chi Mei Optoelectronics Corp, Taiwan's second-largest screen maker, surged 4.6 percent to T$36.40.
However, large-cap semiconductor shares eased after a bull run fuelled by foreign investor buying ahead of Morgan Stanley Capital International's November 30 hike to Taiwan's weighting.
Taiwan Semiconductor Manufacturing Co, the world's largest contract microchip maker, lost 0.21 percent to end at T$47.80, its first decline in eight sessions.
After the market close, TSMC said its October sales had dipped 0.9 percent from the previous month as customers sold off excess inventories amid weakening demand for consumer electronics.
While October's revenue was up 13.1 percent from the same month last year, it was the second straight month-on-month decline for TSMC after sales hit an all-time high in August.
The financial subindex fell 0.25 percent on the day, but has still soared 26 percent since a 2004 low was set on August 5, far outperforming the bellwether electronics index's 7 percent gain over the same period.
The over-the-counter market's TAISDAQ index gained 0.84 percent to close at 111.09, while November TAIEX index futures gained 0.58 percent to end at 5,943.