Taiwan shares ended down 0.82 percent from a 7-year high on Tuesday, as a weaker Wall Street prompted investors to take profits in technology firms such as High Tech Computer (HTC). The main TAIEX share index slid 73.44 points to 8,865.75 points. The electronics sub-index fell 1.33 percent, weighed down by a 4.2 percent drop in smartphone maker HTC.
"Even as most investors are bullish on Taiwan stocks, yesterday's fall on Wall Street triggered profit-taking pressure," said Kevin Yang, chief investment officer of Paradigm Asset Management, which manages T$30 billion (US $91 million) in client assets.
Yang predicted the TAIEX would see technical support at 8,600 points. The index ended at a seven-year high on Monday, staging a 9 percent rally so far this month following heavy buying by foreign investors. United Microelectronics Corp (UMC), the world's No 2 contract chip maker, fell 0.75 percent after its US-listed shares dropped 2.55 percent overnight.
Bigger rival Taiwan Semiconductor Manufacturing Co Ltd slid 1.9 percent. The fall in semiconductor shares tracked losses in some regional chip stocks such as Elpida after spot prices of dynamic random access memory (DRAM) eased after a rare increase last week.
The financial sub-index rose 0.33 percent boosted by a 7-percent rally in smaller lender Ta Chong Bank. Private equity fund Carlyle Group might outbid MBK Partners in buying a stake of Ta Chong Bank, local media reported. Chip packaging houses ASE closed unchanged and Siliconware ended down 2.81 percent.
The firms could be threatened by a possible take-over of rival UTAC, whose shares were suspended on Monday, along with market talk that Amkor is also a take-over target, local media reported. Yulon Nissan rose 0.37 percent after local media reported two of its China-invested ventures were aiming to boost their combined sales to 250,000 or more cars this year from 203,000 in 2006.
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