Taipei - Taiwan stocks ended 2.28 per cent lower Friday, losing its 5,000-point support as jittery investors sold strongly, despite Wall Street's overnight rally, dealers said.

Unaffected by Wall Street's sharp 400-point gain overnight, the Taiex index opened lower and extended its downtrend throughout the trading session to close at 4,960.40, a drop of 115.57 points or 2.28 per cent.

Dealers said investors were worried about the prospect of the market when the Taiwan Stocks Exchange resumes the daily 7- per-cent bottom limit next week. The regulator halved the bottom limit two weeks ago to try to cushion the slump of the local stocks in response to US financial turmoil.

Dealers said the death of Wang Yung-ching, founder of the multi-billion-US-dollar Formosa Plastics Group, continued to dampen market sentiment as investors feared that the group's operation would be hampered after the death of Wang.

The shares of the group's 10 affiliated companies have dropped sharply since Wang's death.

Wang, dubbed "god of management" in Taiwan, and listed by Forbes as the second wealthiest man in 2008, died of heart failure in New Jersey on Wednesday during a visit to inspect the group's US business. He was 92. (dpa)