Taipei shares close lower on political concerns

TAIPEI (AFX-ASIA) - Share prices closed lower on continued political concerns, with expectations of a technical barrier emerging soon erasing early gains triggered by Wall Street's positive performance on Friday, dealers said.	    They said sentiment continued to be overshadowed by a threat by opposition legislators to seek the resignation of Premier Chang Chun-hsiung if the cabinet fails to stimulate the economy.	    The weighted index closed down 14.12 points or 0.27 pct at 5,229.93, off a high of 5,316.79 and a low of 5,200.75. 	    Volume was 1.42 bln shares worth 48.82 bln twd. 	    Decliners led risers 387 to 138, with 63 stocks unchanged. 	    Seven stocks closed limit-up and 68 limit-down. 	    The Taiwan dollar closed the morning session at 32.884 against the U.S. dollar, unchanged from the previous close.	    International Investment Trust assistant vice president William Wang said the lack of fresh leads kept the bourse in a narrow consolidation but added the thin volume suggests the consolidation is nearing its end and that a technical recovery may be just around the corner.	    "Political concerns and expectations of technical pressure on the short-term moving average of around 5,400 points put a lid on position-building."	    However, gains in heavyweights TSMC and UMC, evident foreign interest in the previous session and Wall Street's positive performance Friday somewhat curbed the selling pressure, he said.	    TSMC added 2.00 twd to 95.00 and UMC gained 1.00 to 52.50.	    "I don't expect the impact of political concerns to last much longer as the opposition is unlikely to push through a (resignation) move against the premier any time soon," Wang said.	    Compal closed up 0.20 at 44.10, off a high of 46.40, after going ex-dividend.	    Hua Nan rose 0.80 to 21.60 while China Motor lost 0.50 to 27.60 after both companies reported April results.	    Yageo was down 0.10 at 42.60 and Far East Air lost 0.60 to 9.70 after Yageo said late Friday it does not plan to increase its stake in Far East Air. 

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