Taiwan shares end slightly lower after earlier gains erased

Taipei, Sept. 2 (CNA) Shares in Taiwan closed slightly lower Tuesday as investors locked in early gains, with caution prevailing in the absence of fresh cues after U.S. markets were closed overnight for the Labor Day holiday, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 54.95 points, or 0.23 percent, at 24,016.78, after moving between 23,890.33 and 24,295.03. Turnover totaled NT$409.64 billion (US$13.36 billion).

After falling 0.67 percent Monday, the Taiex staged a rebound at the open on Tuesday and rose nearly 180 points before selling pressure sent the main board into negative territory by the close.

"Caution continued to dominate as investors awaited new leads," said Alex Huang, an analyst with Mega International Investment Services, adding that U.S. nonfarm payroll data due Friday could provide direction as a key factor for Federal Reserve policy.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the market, slipped 0.43 percent to NT$1,160.00.

"Selling in TSMC was not intolerable at all, or the index would have fallen further," Huang said, noting investors remained confident in the company's fundamentals.

Among other tech stocks, TSMC equipment supplier Scientech Corp. fell 1.97 percent to NT$373.50, while smartphone IC designer MediaTek Inc. was flat at NT$1,360. IC packaging and testing provider ASE Technology Holding Co. gained 0.64 percent to NT$157.

Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, closed unchanged at NT$198, while graphics card vendor Giga-Byte Technology Co. lost 1.13 percent to NT$263.50.

Old economy stocks were mixed, with Uni-President Enterprises Corp. up 1.03 percent at NT$78.20, while Wei Chuan Foods Corp. was unchanged at NT$15.55.

Electric machinery stocks fell, with Shihlin Electric & Engineering Corp. down 2.62 percent to NT$186 and Fortune Electric Co. down 3.38 percent to NT$600.

The financial sector rose 1.32 percent on bargain hunting, led by Fubon Financial Holding Co., which gained 2.72 percent to NT$86.80, and Cathay Financial Holding Co., up 1.44 percent to NT$63.50.

"Today's selling pushed the Taiex below its 20-day moving average of 24,127 points, so more losses are possible," Huang said.

Despite the index's decline, foreign institutional investors bought a net NT$7.63 billion worth of shares Tuesday, according to the TWSE.