Taipei:Shares in Taiwan closed slightly lower as large-cap tech stocks took a breather ahead of the 50,000-point mark on the Taiex, the Taiwan Stock Exchange's benchmark index. The upcoming National Day holiday also contributed to investors' cautious approach, resulting in a minor decline.

According to Focus Taiwan, the Taiex ended down 16.18 points, or 0.03 percent, at 49,806.37, with a trading range between 49,567.52 and 49,966.89. The day's turnover reached NT$925.99 billion (US$29.12 billion). Analyst Tony Huang from Taishin Securities Investment Advisory noted that the 50,000-point mark remains a psychological barrier for investors, especially after a strong rally since June.

Despite the overall dip, some stocks saw gains. Passive electronic component stocks attracted bargain hunters, with Yageo Corp. and Walsin Technology Corp. rising by 3.52 percent and 10 percent, respectively. In the old-economy sector, petrochemical stocks like Formosa Plastics Corp. and Nan Ya Plastics Corp. saw substantial increases, rising 10 percent and 7.17 percent, respectively.

The financial sector outperformed technology, gaining 1.02 percent due to rotational buying. Key performers included Hua Nan Financial Holdings Co. and KGI Financial Holding Co., which rose 3.19 percent and 2.26 percent, respectively.

Despite sound fundamentals, analyst Huang warned about potential uncertainty from U.S. monetary policy affecting the local market's performance. Foreign institutional investors sold a net NT$13.04 billion worth of shares on the main board, as reported by the Taiwan Stock Exchange.