Share prices closed sharply lower, with the index at a near 20-month low, on worries over high crude oil prices and margin calls, dealers said.

Airlines tumbled as investors were focusing more on the impact of high fuel prices on their earnings, than on weekend charter flights between Taiwan and China which began today.

An inaugural flight from China, operated by China Southern Airlines, landed at the Taoyuan international airport in northern Taiwan today, kicking off the first regular direct flights between mainland China and Taiwan in almost six decades.

Five Taiwanese airlines and six China airlines will operate 18 non-stop flights from each side during Fridays through Mondays every week.

Tourism stocks were down on profit-taking after early gains spurred by direct arrivals of mainland Chinese tourists.

The weighted index closed down 165.69 points or 2.24 pct at 7,228.41, its lowest finishing level since 7,204.04 hit on Nov 14, 2006. For this week, the index is down 320.35 points or 4.24 pct.

It moved in the range of 7,416.25 and 7,226.84 today.

Turnover was 98.25 bln twd.

China Airlines tumbled 0.90 twd to 12.55 and EVA Airways plunged 0.95 twd to 12.65. Both were limit-down 7 pct.

The transport sector was down 4.14 pct and tourism sector shed 3.98 pct.

(1 usd = 30.40 twd)