Continued Consolidation Called For Taiwan Bourse

Ahead of the long weekend for the Dragon Boat Festival, the Taiwan stock market had halted the four-day winning streak in which it had gathered almost 165 points or 1.6 percent. The Taiwan Stock Exchange now rests just above the 10,100-point plateau and it is likely to take further damage on Wednesday.

The global forecast for the Asian markets predicts mild consolidation thanks to soft economic data and a decline in oil prices. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The TSE finished slightly lower on Friday following losses from the financial shares and the technology stocks.

For the day, the index dipped 6.54 points or 0.06 percent to finish at 10,101.95 after trading between 10,072.84 and 10,121.88 on turnover of 91.77 billion Taiwan dollars.

Among the actives, Cathay Financial skidded 1.23 percent, while Fubon Financial fell 0.84 percent, Taiwan Semiconductor Manufacturing Company was unchanged, AU Optronics tumbled 1.26 percent, Innolux dropped 1.09 percent, Hon Hai Precision shed 0.48 percent, Largan Precision added 0.62 percent and MediaTek perked 0.44 percent.

The lead from Wall Street is negative as stocks moved lower on Tuesday, snapping a long win streak as weakness emerged in the energy and banking sectors.

The Dow shed 50.81 points or 0.24 percent to 21,029.41, while the NASDAQ fell 7.00 points or 0.11 percent to 6,203.19 and the S&P lost 2.91 points or 0.12 percent to 2,412.91.

In economic news, the Conference Board’s Consumer Confidence Index slipped to 117.9 in May, down from 119.4 in April. Also, the Commerce Department said personal income and spending both increased as expected in April.

Crude oil futures were little changed Tuesday, bouncing back from early losses to remain in a tight range near $50 a barrel. July WTI oil was down 14 cents or 0.3 percent to $49.66/bbl.

by RTT Staff Writer

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