Taiwan stocks ended little changed on Tuesday, with the market largely directionless as foreign investors headed off on holiday, though steel shares like Chung Hung shined thanks to surging nickel prices. The TAIEX share index ended with a paper-thin gain of 0.03 percent to 5,987.85, fluctuating no more than 15 points in either direction during the session.
However, major semiconductor shares floundered without support from foreigners, as Taiwan Semiconductor Manufacturing Co lost 1.4 percent to close at T$49.30.
"Foreign investors in Europe and the United States are gradually going on holiday and that means the market does not have a leader right now," said Alex Huang, vice president of Barits International Securities.
"Stocks seem inured to both good news and bad news, and the only sector that is reacting strongly is steel," Huang said.
Makers of stainless steel powered higher after nickel prices surged nearly eight percent on the London Metals Exchange on Monday. Small steel-maker Chung Hung Steel was the most active issue and jumped 2.73 percent to T$22.60.
Taiwan's largest steelmaker, China Steel added 0.85 percent to finish at T$35.80 in active trade.
Overall market turnover was sleepy at just T$53.9 billion, however, down from an already lacklustre T$56.8 billion in Monday's session.
Makers of liquid crystal display (LCD) screens, which helped the index to last Thursday's 4-week closing high, rebounded from losses triggered by Chunghwa Picture Tube's move to cut its 2004 pre-tax profit forecast by nearly a third.
Local investor favourite AU Optronics, the world's third largest LCD screen manufacturer, added 1.56 percent to close at T$45.50, while Chi Mei Optoelectronics was unchanged despite broad losses in the electronic sector.
Chunghwa Picture Tube extended losses after tumbling 3.15 percent on Monday, losing T$0.15, or 1.08 percent, to close at T$13.70.
The over-the-counter market's TAISDAQ index rose 0.74 percent to close at 112.87. January TAIEX futures added 16 points, or 0.27 percent, but nonetheless closed at a discount to the spot price at 5,978.