Taipei shares close mixed as margin calls curb gains on Wall St/foreign buying

TAIPEI (AFX-ASIA) - Share prices closed mixed as selling ahead of margin calls in select stocks curbed earlier gains on the back of Wall Street's advance overnight, the firmer local currency and momentum from foreign buying from yesterday, dealers said.

	    They said the Taiwan dollar rebounded as investors locked profits in the U.S. dollar amid expectations of central bank intervention following comments that the monetary authority would take aggressive measures to support the local unit when necessary.

	    They said trading volume remained light, highlighting the sidelined mood as the market awaits China's response to President Chen Shui-bian's two-week long overseas trip.

	    The weighted index closed up 32.87 points or 0.66 pct at 4,991.48, off a high of 5,049.04. 

	    Volume was 1.50 bln shares worth 46.13 bln twd. 

	    Decliners led risers 302 to 176, with 112 stocks unchanged. 

	    Five stocks closed limit-up and 42 limit-down. 

	    The textiles, petrochemicals, electronics and financials sectors were up 2.56 pct, 0.97 pct, 0.84 pct and 0.02 pct.

	    The construction, paper, cement and food sectors were down 1.53 pct 0.68 pct, 0.43 pct and 0.40 pct.

	    The Taiwan dollar was at 33.446 against the U.S. dollar, from yesterday's close of 33.456.

	    Entrust Securities Investment Consulting Co assistant vice president Tom Tang said sentiment was bolstered by foreign investors' position-building yesterday when the market lost ground as the local currency weakened.

	    "The strong showing on Wall Street -- particularly the NASDAQ -- overnight coupled with a steady local forex market this morning gave a lift to the equity market in early trade."

	    But concerns over margin calls put a lid on the upside, he said.

	    "Some were hit by margin calls, some (investors) offloaded holdings ahead of margin calls... those stocks with high margin loans outstanding were among the hardest hit," he said.

	    Investors were reluctant to push the upside with no signs in sight to indicate immediate fundamental improvements, he said.

	    "Sales of electronics companies, for instance, may this month be flat or worse than the previous month's."

	    TSMC added 1.50 twd to 90.00, tracking its U.S. peers, and following the announcement of Hu Chenming being appointed as chief technology officer.

	    Macronix was limit-up 2.00 at 31.90 after going ex-dividend.

	    Cathay Life fell 1.00 to 43.70, Fubon Insurance rose 0.70 to 28.30, ICBC was unchanged at 22.30 and Chiao Tung Bank rose 0.20 to 24.40 after shareholders at their respective AGMs approved their 2000 dividend proposals.

	    Hualon was limit-down 0.11 at 1.48 on a report that it has applied to the Ministry of Finance for financing relief.

	    Nanya Technology fell 1.50 to 22.80 after yesterday saying it plans to revise the pricing of its 500 mln rights shares offer.

	    Taiwan Cellular lost 1.10 to 38.70, pressured by a selloff by its major shareholders on investor disappointment with the results of the share bidding by unit Taiwan Fixed Network Corp yesterday.

	    Acer Inc rose 0.40 to 18.20 and Acer CM added 0.10 to 36.6 after announcing sales of Taiwan Cellular shareholdings.

	    Elitegroup lost 2.50 to 92.00, Universal Scientific was limit-down 1.10 at 15.90 and Lite-On Technology lost 1.20 to 32.00 on market concerns of high margin loans outstanding.

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