Taiwan shares finish sharply lower amid war fears

Taipei, March 18, 2003 (CENS)--Taiwan shares ended sharply lower yesterday as war fears prompted investors to lock in profits after a three-day winning streak, analysts said.

Investors also opted to retreat to the sidelines after U.S. President George W. Bush gave the United Nations a Monday deadline to endorse the use of force to compel Iraq's immediate disarmament, said analysts.

The weighted price index of the Taiwan Stock Exchange fell 118.18 points, or 2.64%, to 4357.99 in dealings valued at NT$36.60 billion. Decliners well outnumbered gainers 637 to 50, while 49 issues remained unchanged.

Share prices fell across the board, led by technology stocks, which ended trading 2.4% lower.

Two chip foundry giants fell following losses in their American depositary receipts late last week. Taiwan Semiconductor Manufacturing fell NT$1.50 to NT$44 and United Microelectronics was down NT$0.30 to NT$20.

Connector maker Hon Hai Precision Industry lost NT$4.50 to NT$112, Asustek Computer dropped NT$2.00 to NT$62.50, and AU Optronics gave up NT$0.60 to NT$20.10.

Of other sectors, paper & pulp issues lost 4.8%, steel stocks fell 3.9%, transportation issues dipped 3.8%, the financial sector ended down 3.6%, foodstuff issues declined 3.3% and textiles slid 2.7%.

However, Formosa Plastics edged up NT$0.10 to NT$43.30 after local newspapers reported that the company planned to build a US$6 billion steel mill in China, although the company's chairman has denied the reports.

The price index of the over-the-counter market ended down 2.44 points, or 2.66%, to 89.30 in dealings valued at NT$2.55 billion.

March index futures on Taiwan's futures exchange closed down 161 points to 4318 on turnover of 11,793 lots. March electronics futures shed seven points to 176 on volume of 2,187 lots, while March financial futures slid 27.20 points to 651.80 on turnover of 2,640 lots.