Taipei- Taiwan's stocks plunged 3.19 per cent Thursday as investors lost confidence in the island's economic outlook, despite a government announcement of a
180 billion Taiwan dollar (5.6 billion US) economic stimulus package, dealers said.

The Weighted Price Index of the Taiwan Stock Exchange opened lower and continued its downward trend to close at 6251.95 points, down 206.06 points or 3.19 per cent from the previous trading session.

Dealers said the Cabinet's announcement Thursday of its plan to adopt the package to stimulate the sagging economy failed to convince investors the island's economic outlook would fare better in the face of global downturn.

They said the local index opened down 0.3 per cent even after the government said in the previous night it would halve the securities transaction tax to 0.15 per cent, indicating high uncertainty in the market.

All eight major sectors slipped, with cement losing 6.16 per cent to become the day's biggest loser, followed by construction's 4.78 per cent and textile's 4.66 per cent. (dpa)