TAIPEI (XFN-ASIA) - Share prices closed slightly lower following a rise in oil prices overnight and disappointing earnings news from US technology firms.
Textile and transport firms were hit by profit-taking after sharp gains yesterday, but financials held up well due to share buyback news.
Cement firms outperformed on strong product prices in China, where many Taiwan cement makers have operations.
Technology stocks were pressured by sharp falls in Texas Instruments (TI) and Apple Inc shares in US after-hours trade after their quarterly earnings reports and forward guidance.
The weighted index closed down 20.02 points or 0.28 pct at 7,065.65, off a low of 6,998.13 and high of 7,098.68.
Turnover was 88.52 bln twd.
The textile sector was down 2.24 pct, electronics fell 0.90 pct and transport lost 0.72 pct.
The cement sector was up 4.05 pct and the financial sector gained 0.25 pct.
Tu Jin-lung, chairman at Grand Cathay Investment Services Corp, said investor mood was swaying amid worries over US market prospects and hopes for government support for the local bourse.
"Reignited worries over oil costs and the negative impact on consumption convinced short-term investors to pocket profits when possible," he said.
Textile and transport sectors saw profit-taking after yesterday's rally, while technology firms were pressured by TI and Apple share slumps, Tu noted.
"There were fears that the TI and Apple retreat in after-hours trade might lead to weakness on Wall Street" tonight, he said.
Texas Instruments reported second-quarter net earnings of 44 US cents a share against analysts' expectations of 46 cents.
Apple's earnings of 1.19 usd per share for its fiscal third-quarter came in ahead of expectations but its earnings guidance for the current quarter disappointed analysts.
Both stocks fell over 10 pct in US after-hours trade Monday.
Despite the weak undertone, some investors were willing to build positions amid hopes that government-related funds will continue to defend the local bourse, Tu said.
Positive news in some sectors also underpinned select stocks, he added.
"Financial stocks were bolstered by shares buyback leads while cement attracted interest on higher cement prices in China."
Gainers and decliners were even at 1,017, while 471 stocks were unchanged.
A total of 28 stocks closed limit-up, while 31 were limit-down.
The Taiwan dollar ended the morning session at 30.373 to the US dollar, compared with the previous close of 30.363.
Taiwan Cement rallied 2.20 twd or 5.99 pct to 38.95 and Asia Cement soared 1.95 twd or 4.56 pct to 44.75.
Taiwan Cooperative Bank surged 0.75 twd or 2.96 pct to 26.10 on a possible share buyback, while Chinatrust Financial gained 0.25 twd to 23.80 on its share repurchases.
Among technology firms, Taiwan Semiconductor Manufacturing Co (TSMC) shed 1.90 twd or 3.18 pct to 57.90, United Microelectronics (UMC) lost 0.35 twd or 2.21 pct to 15.50, Hon Hai Precision dropped 2.00 twd to 149.00 and AU Optronics fell 0.45 twd at 40.20.
China Airlines dropped 0.20 twd or 1.90 pct to 10.30 and EVA Airways gave up 0.15 twd or 1.41 pct to 10.50 after crude oil rose more than 2 usd overnight.
Among other stocks, Far Eastern Textile fell 0.50 twd to 38.20, MediaTek rose 1.50 twd to 325.00 and Formosa Plastics added 0.60 twd to 62.60.
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