Taiwan stocks ended little changed on Tuesday as investors struggled to find promising alternatives to pricey tech shares like UMC, which led the market to a 15-month high earlier this month.
The TAIEX share index ended down 2.73 points, or 0.04 percent, at 6,242.40, despite a rebound for US stocks and easing crude oil prices.
Turnover also shrank to T$64.76 billion from Monday's T$77.24 billion, with the market unable to find a sector that could champion a rebound.
"High-priced electronics stocks were the market's spiritual leader. Now that the leader has fallen, you need another sector to come forward, and this has not happened," said Roger Lin, deputy research manager at Pacific Securities.
Contract microchip maker United Microelectronics Corp (UMC), which has risen by about a third since mid-April, dipped 0.45 percent to close at T$21.90, with investors having largely priced in expectations of improving profits in the second half.
AU Optronics, the world's third largest maker of display screens, lost 0.78 percent to T$50.80, deflating hopes that screen shares would take the vanguard as semiconductor shares faltered.
Steel shares also posted firm gains amid hopes of improving product prices. Sector leader China Steel ended with a gain of T$0.30, or 1.06 percent, at T$28.70.
The market took a wait-and-see stance to reports that Morgan Stanley Capital International (MSCI) may drop Taiwan stocks from its indices due to a dispute with Taiwan's market regulators over Singapore-traded MSCI Taiwan index futures.
The over-the-counter market's TAISDAQ index edged up 0.09 percent to 125.63, while July TAIEX index futures dipped 5 points, or 0.08 percent, to 6,235.
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