Taipei shares close mixed in thin trade ahead of FOMC meeting

TAIPEI (AFX-ASIA) - Share prices closed mixed in thin trade as sentiment, already dampened by investors staying sidelined ahead of the FOMC meeting, was weakened further by falls in TSMC and UMC ADRs overnight, dealers said.

	    Uncertainty over the impact of Morgan Stanley Capital International announcements later this week also kept buying interest at bay, although foreign investor interest, after they were net buyers of shares worth 1.79 bln twd yesterday, and hopes for government support prevented the bourse from experiencing a major downturn.

	    The weighted index closed down 17.66 points or 0.34 pct at 5,158.79, off a high of 5,210.36 and a low of 5,142.89. 

	    Volume was 1.16 bln shares worth 36.30 bln twd. 

	    Advancers led decliners 267 to 203, with 118 stocks unchanged. 

	    Some 16 stocks closed limit-up and seven limit-down.

	    The food, cement, electronics, and financials sectors were down 0.76 pct, 0.53 pct, 0.51 pct, and 0.50 pct.

	    The construction, petrochemicals, paper, and textiles sectors were up 0.83 pct, 0.78 pct, 0.42 pct, and 0.41 pct. 

	    The Taiwan dollar was at 32.888 against the U.S. dollar, from yesterday's close of 32.882.

	    "The TSMC and UMC ADR weakness added pressure to the local bourse... uncertainty over any weighting cut in TSMC by MSCI knocked down its shares," Entrust Securities Corp assistant vice president Tom Tang said.

	    The TSMC AGM this morning approved a 4.00 twd stock dividend for 2000 and the company chairman reiterated his forecast of sequential quarterly improvement from the third quarter.

	    But these two factors failed to bolster sentiment in the absence of major fresh positive leads.

	    Tang said the downside risk was curbed by investor hopes for government support in the run up to the anniversary of the Chen Shui-bian government's inauguration on May 20.

	    He said the weak turnover showed that investors were awaiting the FOMC decision and the response of the domestic central bank, which will shape the bourse's direction tomorrow. 

	    TSMC lost 3.00 twd to 89.50 as ADR falls overnight, reported wafer foundry price cut pressure and concerns over a possible weighting change by MSCI outweighed the company's forecast of sequential quarterly improvement from Q3.

	    UMC fell 1.00 twd to 51.00 after ADR weakness and a report of pressure for a cut in product prices.

	    Winbond rose 12.0 twd to 29.70 after going ex-dividend, with sentiment lifted by foreign investors being net buyers of 12.90 mln shares.

	    Grand Commercial was limit-up 0.45 twd at 7.25 after it said that ABN AMRO Bank NV is one of many tie-up candidates.

	    Yageo added 0.70 twd to 36.80 after its AGM approved the 2000 dividend and a GDR issue.

	    TECO was 0.10 twd lower at 17.10 and Sampo down 0.05 at 12.95. TECO's AGM decided to change the share swap ratio for the firms' planned merger after Sampo adjusted its 2000 dividend.

	    Tuntex was limit-down 0.07 twd at 1.04 after a report that the group is to discuss financing relief with banks today.

	    Mosel Vitelic was down 0.20 twd at 21.00 after news it plans a power IC joint venture and the acquisition of an eight-inch-wafer plant.

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