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Taiwan share prices close down 1.32 percent

Taiwan share prices close down 1.32 percent

Taiwan share prices closed 1.32 percent lower yesterday amid fears that the central bank may tighten credit, dealers said.
The weighted index fell 90.21 points to 6,719.21 on turnover of NT101.42 billion (US$3.08 billion).
Losers outnumbered gainers 1,867 to 543, while 108 stocks were unchanged. A total of 42 shares fell to their daily 7.0 percent limit, against 14 limit-up.
The market opened lower and hit an intraday low of 6,667.18 before bargain-hunting set in, with buying focusing on big caps and computer notebook-related shares, analysts said.
Taiwan's M1B measure of money supply, considered a barometer of the stock market's momentum, rose in July by 20.64 percent from a year earlier, the 12th consecutive rise in as many months said Taiwan's central bank.
The figures sparked concerns that the central bank may tighten lending in a bid to avoid an economic bubble. "The central bank is not likely to raise interest rates at the moment, given the domestic economic condition," Chen Yu-yu of Capital Securities said.
"But the central bank may tighten credit. Should that happen, the market would lose strength."
Textiles fell 3.41 percent, chemicals dropped 2.04 percent, financials lost 1.46 percent and electronics was down 1.11 percent.
Taiwan Semiconductor Manufacturing Co was 0.51 percent firmer at 59.0 while United Microelectronics Corp edged up 0.37 percent at 13.7.


Updated : 2021-07-31 17:05 GMT+08:00