A futures-driven sell-off caused the TAIEX to plunge 2.18 percent yesterday to 9,348.63 points, its lowest level in four-and-a-half months, following speculation that foreign institutional investors added a net 10,000 short-position contracts in the day.
Yesterday was the fourth straight losing session on the main bourse since the government relaxed the stock-trading band on Monday to 10 percent, from the previous 7 percent, in line with international trends.
Turnover expanded to NT$135.17 billion (US$4.35 billion) from the previous session’s NT$100.93 billion, according to the Taiwan Stock Exchange’s (TWSE) data.
Institutional investors sold a net NT$18.78 billion of Taiwanese shares yesterday, which included net sales of NT$13.07 billion by foreign institutional investors, the TWSE data showed.
“After the local main board consolidated for about three weeks without making a breakthrough, many investors appeared impatient and unloaded their holdings instead,” Mega International Investment Services Corp (兆豐投顧) analyst Alex Huang (黃國偉) told the Central News Agency.
Huang said it was no surprise that foreign institutional investors rushed to dump their holdings in the spot market, especially large-cap high-tech stocks, to make profits in the futures market.
Shares of smartphone camera lens supplier Largan Precision Co (大立光) fell 7.24 percent to close at NT$3,205, Taiwan Semiconductor Manufacturing Co (台積電) dropped 1.4 percent to close at NT$141 and chip packaging and testing services provider Advanced Semiconductor Engineering Inc (日月光) lost 2.7 percent to NT$41.50.
UBS Securities Taiwan Ltd yesterday trimmed its target forecast for the TAIEX to 10,000 points this year, from the previous estimate of 10,600, as the economy displays signs of slowdown and investors lose some confidence.
The brokerage attributed the recent corrections in the local bourse to net selling by retail investors uneasy about political uncertainty and disappointing trade data.
After breaching the 10,000-point mark on an intraday basis in late April, the TAIEX had drifted lower by 2.7 percent for the past month, UBS Taiwan equities and research head William Dong (董成康) said.
UBS said it does not see a 12 percent contraction in exports in April as a sign of faltering external demand, saying it was caused partly by falling export prices.
However, a slowdown in emerging markets, China in particular, warrants caution given Taiwan’s heavy dependence on China, which accounts for 40 percent of exports, the brokerage said.
Shipments to China shrank 6.5 percent for the first four months of the year and was down 12.5 percent to trade partners in Southeast Asia over the same period, according to statistics provided by the Ministry of Finance.
Softening exports have led UBS to cut earnings growth forecasts among listed Taiwanese firms to 9.8 percent this year, down 2.5 percentage points from its earlier estimate, citing weak PC shipments, a slowdown in China’s handset market and an inventory adjustment for semiconductors.
However, UBS expects the market to rebound in the second half of the year, when companies are due to distribute dividend payouts and technology shipments are set to improve during the high season, Dong said.
In addition, the government might come up with market-friendly policies ahead of the presidential and legislative elections in January next year, Dong said.
Such policies could include further liberalization in the financial industry, more overseas investments and a potential increase in equity investments by government funds, he said.
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The US$410 DeliSofter pot looks much like the rice cookers ubiquitous in Japanese households and it does prepare rice in 24 minutes. However, this invention of two Panasonic Corp engineers is designed to do more and help people with swallowing difficulties. The two women led the creation of a spin-off company, Gifmo Co, to sell the specialized steam cooker, which they say can turn fried chicken soft enough to be sliced with a potato chip. The machine works by first cutting into food with a series of blades and then subjecting it to extremely high pressure at a temperature of 120°C,
Google’s Irish subsidiary has agreed to pay 218 million euros (US$244.94 million) in back taxes to the Irish government, company filings showed on Thursday. The US tech giant, which had been accused of avoiding tax across Europe through loopholes known as the “Double Irish, Dutch Sandwich,” said it had “agreed to the resolution of certain tax matters relating to prior years.” Google Ireland Ltd said it would pay corporation tax of 622 million euros for last year, including the 218 million euros of backdated tax settlement and interest charges. The previous year, Google Ireland paid taxes of 263 million euros. The company, which is
Ginko International Co (金可國際), the nation’s biggest maker of contact lenses, yesterday said that its board of directors approved a takeover bid of NT$27.18 billion (US$976.43 million) by Glamor Vision Ltd and its subsidiary Glamor International Ltd. The Glamor offer was to buy all 97.07 million Ginko shares for NT$280 each, Ginko said in statement submitted to the Taiwan Stock Exchange. That represents a premium of 38.61 percent compared with Ginko’s closing price of NT$202 on Thursday. After the transaction, Ginko would become a private company, with all shares delisted from Taipei Exchange, the statement said. The firm’s global headquarters in Taichung and its