TAIPEI - Taiwan's top financial regulator plans to extend a rule that prohibits investors from short-selling shares of companies for another two weeks, a local newspaper reported on Saturday.

The Financial Supervisory Commission (FSC) announced in late September that investors would not be allow to short-sell shares on Oct 1-14, and the Economic Daily News said the ban will be extended immediately after it expires, without citing sources.

FSC officials were not available for comments.

Taiwan has taken a slew of measures in the past month to support the island's financial markets, after its main Taiex share index plunged as part of a global sell-off sparked by the credit crunch and fears of recession.

Taiwan's stock market fell to its lowest close in more than five years on Thursday, despite a rate cut by Taiwan's central bank.

Taiwan's financial markets were closed on Friday due to a national holiday, while US stocks fell for the eighth day on mounting fears that frozen credit markets would push the world into recession.

The Chinese-language Economic Daily added that Taiwan's government is considering unveiling more market-boosting measures before the Taipei market opens next Monday, including narrowing the downside limit on individual stock movement temporarily.

In Taiwan, the daily upside and downside limit on individual stock movement is 7 per cent each. -- REUTERS