The previous low of 5,427.75 points was seen on August 18, 2004.

The weighted index fluctuated between 5,505.70 and 5,590.52 points.

Losers led gainers by 1,486 to 208 with 280 stocks unchanged on light turnover of NT$60.21 billion.

The market opened sharply lower with a steep drop of 175 points after Wall Street’s slide on Friday despite U.S. Congressional approval of a massive financial rescue package and President George Bush immediately signing the bill.

The downside extended until the end of the session, as investors were concerned the ailing global financial system would trigger liquidity problems and worsen the economic fundamentals, said securities analysts. The approval of the U.S. financial rescue plan failed to revive market confidence and pessimism spread fast to other economies.

The meeting of the leaders of four major European economies — Germany, Britain, France, and Italy — also failed to bolster market confidence as more major banks needed to be bailed out and the governments had to boost deposit guaranty for customers.

Foreign institutional investors, who needed funds to meet redemption demand back in the U.S. amid Wall Street’s turmoil, unloaded NT$13.56 billion in shares than they purchased.

Securities firms with their own stock investment departments also shed stockholdings with net-sale of NT$579 million, followed by net-sale of NT$189 million by securities investment consulting firms.

Financial firms were the biggest victims of sell-off as investors worried that an escalating global credit crunch would impact banks’ operations. Investors also worried about banks’ exposure to the liabilities of the U.S. financial sector, analysts said.

International investors have forecast more Wall Street turbulence down the road.

Selling also focused on bellwether electronics companies that were traded at relatively at higher prices.

Fubon Financial shed 6.98 percent to NT$20.65 and Cathay Financial fell 6.94 percent to NT$39.55.

Chinatrust Financial lost 6.75 percent to NT$15.20 and Mega Financial fell 6.93 percent to NT$12.75.

Cathay Financial Holdings Co. was down NT$2.95, or 6.9 percent its daily limit, to NT$39.55. Cathay, Taiwan’s largest financial-services company, said pretax net income at its banking unit fell to NT$94 million (US$2.9 million) for September, compared with NT$845 million in August.

SinoPac Financial Holdings Co. tumbled 57 cents, or the 7 percent daily limit, to NT$7.58. The financial services company posted a loss of NT$706 million for September, compared with the NT$83 million deficit it reported for August.

Yuanta Financial Holding Co. declined 75 cents, or 4.3 percent, to NT$16.70. The company, the owner of Taiwan’s largest securities brokerage, said it had a loss of NT$465 million for September, including a NT$285 million deficit at its banking unit.

In the high-tech sector, Taiwan Semiconductor Manufacturing Co. fell 4.67 percent to NT$49.00 and Hon Hai Precision lost 5.71 percent to NT$99, while United Microelectronics Corp closed unchanged at NT$10.

Cathay Real Estate shed 6.92 percent to NT$8.47 and Goldsun Development lost 6.98 percent to NT$7.99.

Huaku Development Co. dropped NT$2.80, or 6.9 percent its daily limit, to NT$37.70. The real-estate developer said after the market closed last week that it didn’t sell residential apartments as fast this year as it did last year.

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