Stocks fell for the third day in four yesterday. Taiwan Semiconductor Manufacturing Corp (TSMC, 台積電) led declines among chipmakers after the NASDAQ Composite Index slid on concern US profit growth will slow.
The TAIEX shed 98.99, or 1.4 percent, to 6,874.91. About three stocks fell for every one that gained. The index has declined 2.3 percent since Friday. Taiex futures for March delivery dropped 1.7 percent to 6,930.
TSMC fell NT$2.50, or 3.8 percent, to NT$63. United Microelectronics Corp (聯電) lost NT$0.90, or 2.7 percent, to NT$32.60.
"Profit-taking accelerated as investors turned cautious amid continued losses in US shares," said Hsiuli Lee, a manager at Franklin Templeton First Taiwan.
Comments from Minister of Finance Lin Chuan (林全) that the National Stabilization Fund may consider selling shares if the market continues to rise added further momentum to the sell off.
Flat-panel makers outperformed on the upbeat outlook for the thin-film-transistor (TFT) liquid- crystal display industry.
Terry Gou (郭台銘), chairman of Hon Hai Precision Industry Co (鴻海精密) said on Tuesday that he is "upbeat about the TFT sector's long-term prospects, but over the short term there might be some volatility."
Chi Mei Optoelectronics (
Quanta Computer (廣達電腦), lost NT$2, or 2.4 percent, to NT$83. It reported sales last month were little changed from January. It said last month's sales were NT$21.6 billion compared with NT$21.5 billion in January.
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