Thu, Apr 20, 2017 - Page 12 News List

Taiwan shares fall as UK election-call spooks investors

Staff writer, with CNA

Taiwanese shares yesterday fell below their quarterly moving average of 9,704 points, closing at their lowest point since March 10, as investors reacted nervously to a call for a general election in the UK on June 8, dealers said.

Tuesday’s announcement by British Prime Minister Theresa May that she was calling an early election to prevent “political game-playing” ahead of Brexit and give the UK the “strong and stable leadership” needed to deliver Brexit, sent European and US stocks lower and Asian markets reacted the same way.

Local shares closed down 106.62 points, or 1.09 percent, at 9,639.94, after moving between 9,725.39 and 9,631.64 on turnover of NT$87.38 billion (US$2.87 billion).

An increasingly uncertain international situation and the heavy foreign-exchange losses incurred by listed companies in the first quarter led all major stock categories to lose ground during the session.

The bellwether electronics sector and financial, plastics and chemical, and construction shares all fell about 1 percent.

A 1.12 percent decline in financial shares continued the weakness in the sector that has persisted for about one month and adversely affected the broader market more recently, dealers said.

Cathay Financial (國泰金) closed 1.49 percent lower at NT$46.2, while Chang Hwa Commercial Bank (彰銀) shed 0.4 percent to close at NT$17.5.

Fubon Financial (富邦金) remained unchanged at NT$46.5.

Electronics stocks fell 0.97 percent.

Contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, fell NT$0.8 to end at NT$186.5, while Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics maker, lost 1.24 percent to close at NT$95.8.

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