Wed Feb 9, 2011 9:24pm EST
* TAIEX retreats 1.3 percent, financials weigh
* Fund outflows might be temporary - fund manager
TAIPEI, Feb 10 (Reuters) - The Taiwan main share index
.TWII extended it's decline to as much as 1.3 percent on
Thursday as foreign investors continued to take profit in the
region.
Fund managers, however, said the fund outflow was likely to
be temporary because the strong Taiwan dollar would act as a
draw.
"The fund outflow may not persist as the Taiwan dollar is
still rising. Investors want to take profit as markets including
Hong Kong and China are all falling," said Paradigm Asset
Management Co fund manager Mike Fang.
He said if foreign funds withdrew from Taiwan for three
consecutive days, the downward pressure on the index would be
significant.
On Wednesday, foreign investors sold a net T$5.63 billion
($200 million) on the exchange, after net buying of T$1.85
billion on Tuesday.
By 0219 GMT, the TAIEX index was down 1.16 percent or 104.20
points at 8,902.62, after opening 0.5 percent lower.
The financial sub-index .TFNI dropped 2.5 percent and was
the biggest downward driver. Heavyweight Cathay Financial Holding
Co Ltd (2882.TW) fell 2.8 percent.
Electronics counters .TELI dropped 0.8 percent, with
investors worried that a strong Taiwan currency would hurt their
earnings.
Quanta Computer Inc (2382.TW) fell 3.7 percent and TPK
Holding Co Ltd (3673.TW) eased 2 percent after reporting a drop
in January sales on Wednesday. [ID:nTPV002394]
The Taiwan dollar TWD=TP rose 0.9 percent to T$28.838.
(Reporting by Clare Jim; Editing by Chris Lewis) |
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