Taipei shares close little changed; NASDAQ/Systex offset Q1 earnings concerns

TAIPEI (AFX-ASIA) - Share prices closed little changed in thin trade, as late gains led by Systex and bellwether chip stocks on the back of a firmer NASDAQ overnight offset early weakness on concerns over quarterly results and worsening unemployment, dealers said.	    They said U.S. President George W. Bush's tough talk after unveiling planned Taiwan arm sales did not have much of an impact on the bourse as investors see no realistic short-term prospect of cross-strait conflict.	    The weighted index closed up 2.53 points or 0.05 pct at 5,518.73, off a high of 5,548.67 and a low of 5,461.50. 	    Volume was 1.77 bln shares worth 59.15 bln twd. 	    Decliners led risers 304 to 193, with 98 stocks unchanged. 	    Some 22 stocks closed limit-up and eight limit-down.	    The paper, electronics, petrochemicals, and cement sectors were up 0.26 pct, 0.24 pct, 0.12 pct, and 0.01 pct, respectively.	    The food, construction, financials, and textiles sectors were down 1.02 pct, 0.40 pct, 0.32 pct, and 0.14 pct, respectively. 	    The Taiwan dollar closed the morning session at 32.915 against the U.S. dollar, from yesterday's close of 32.908.	    "The strong showing of Systex after going ex-dividend today sparked fresh interest in stocks with high dividend plans ... short-covering also gave a boost to Systex," Yuanta Core Pacific Capital Management Co Ltd manager Jack Tam said.	    Systex was limit-up 2.90 twd at 59.00 after going ex-stock dividend.	    Large-cap semiconductor stocks gained ground in tandem with the overnight rise in the Philadelphia Semiconductor Index.	    "The NASDAQ's strength was taken as an excuse for future contracts players to lift the benchmark index," he said, noting investors in SIMEX May future contracts on the Taiwan weighted index might push spot prices higher in order to benefit from futures contract settlement due tomorrow.	    "Futures contracts interest should be a better explanation as there is no improvement in industry fundamentals."	    TSMC rose 2.50 to 89.00, UMC added 1.00 to 52.50, Winbond rose 0.30 to 40.10, and VIA gained 3.00 to 325.00	    He said the extended rangebound consolidation and muted turnover confirmed that investors chose to be mostly sidelined ahead of corporate quarterly reports.	    Investors were waiting for corporate reports on first-quarter parent results and 2001 forecasts due soon.	    Quanta fell 2.00 twd to 111.00 ahead of its quarterly results and 2001 forecast due tomorrow.	    Cathay Life fell 0.50 twd to 49.50 after reporting lower-than-expected first-quarter parent results and despite announcing a share buyback scheme.	    Macronix rose 1.50 twd to 52.50 after a report that it is likely to receive an order for mobile phone Mask ROMs.	    Compeq lost 4.00 twd to 106.50 after it said it sees a slight fall in 2001 parent net profit and after reporting April sales at a 13-month low.	    ProMOS rose 0.70 twd to 34.90, Sampo added 0.25 to 13.50, Tainan Business Bank was off 0.04 at 4.50, and EVA Air unchanged at 11.75 following announcement of quarterly parent results.	    USI Far East rose 0.30 twd to 7.45 after proposing a 2000 dividend omission. 

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