Taiwan stock market down over Wellphone bankruptcy

Sandra Chuang, The China Post

The Taiwan stock market yesterday fell 43.04 points, or 0.88 percent, to close at 4,843.82 on a shrinking daily turnover of NT$28.5 billion, the second lowest level of the year.

The index slid 25.45 points at the opening following reports that Wellphone Securities had decided to cease operations from Tuesday for unspecified reasons. As market sentiment remained dismal over poor corporate earnings, the index consolidated on the downside for the rest of the session. “The unexpected closure of Wellphone Securities initially had a considerable impact on the market, but generally the overall sentiment was poor which obviously reflected on the lackluster trade,” a dealer said. Newspaper reports on Tuesday stated that Wellphone Securities had decided to halt operations and file for bankruptcy with outstanding debts of more than NT$6.5 billion. “Meanwhile, persistent worries about June sales and results for the second quarter prompted cautious investors to remain on the sidelines,” the dealer added.

Technology shares were mixed after active foreign buying over the past few sessions, with Taiwan Semiconductor Manufacturing Co. falling 0.8 percent to finish at NT$66.5 and United Microelectronics Corp. shedding 1.3 percent to end at NT$45.9.

Financial shares moved slightly downward as investors awaited for clear signals for the market’s direction.