Taiwan's main TAIEX share index closed 0.53 percent lower on Monday, as investors sold transport and property shares on expected loss in December at a major airline and the government's plan to re-impose a tax on undeveloped land. The banking sector also weighed on the index as profit-taking continued, however fund managers were still optimistic about their share performance this week, betting on good fundamentals.
"There are no downsides to financials; they will be traded in range as the turnover increases," said Kenny Ko, a vice president of Taiwan International Securities Corp. The TAIEX fell 47.42 points to 8,925.09, after opening up 0.29 percent. The transport sub-index tumbled 3.65 percent, with Taiwan's two top airlines, China Airlines and EVA Airways, falling over 6 percent.
A report said China Airlines might see several tens of millions of Taiwan dollar in losses in December, incurred by year-end bonus accounting and non-core business deficit. Property shares dropped 3.09 percent after Taiwan's finance minister said the government would re-impose a tax on undeveloped land holdings. The financials sub-index dropped 1.73 percent while electronics shares were flat.
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