The TAIEX yesterday closed below 9,500 points for the first time since February last year amid continued concerns over trade friction between the US and China, dealers said.
Market sentiment remained cautious after a sell-off by foreign institutional investors, which has heightened concerns of further fund outflows, they said.
Other Asian markets also fell as trade tensions and geopolitical worries kept investors from tracking a rebound on Wall Street, with observers warning of further volatility to come.
The losses came at the end of a punishing week that witnessed steep losses across the board, with several indices wiping out their annual gains as the technology and energy sectors took a beating.
The TAIEX closed down 31.61 points, or 0.33 percent, at 9,489.18 on turnover of NT$128.06 billion (US$4.13 billion).
Elsewhere in Asia, Hong Kong’s Hang Seng fell 1.1 percent, Tokyo’s Nikkei 225 closed 0.4 percent lower and Shanghai’s SSE fell 0.2 percent.
Singapore’s Straits Times Index dove 1.4 percent, Seoul’s KOSPI shed 1.8 percent and Bangkok’s SET fell 0.5 percent.
However, Wellington’s NZX 50 was marginally higher and Manila’s PSEi added more than 1 percent.
In Taipei, some bargain-hunters emerged late in the session to pick up large-cap stocks, in particular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), helping the TAIEX recoup some of its losses by the end of the session.
“It was a volatile session as investors remained bothered by unfavorable external factors such as the Washington-Beijing trade tensions,” Hua Nan Securities Co (華南永昌證券) analyst Kevin Su (蘇俊宏) said. “So when the index bounced back in the morning, many investors tended to lock in profits.”
TSMC, the most heavily weighted stock on the local market, gained 0.68 percent to close at NT$221.
Largan Precision Co (大立光) fell 2.43 percent to NT$3,210 and integrated circuit designer MediaTek Inc (聯發科) shed 3.81 percent to close at NT$202.
Shares of Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics maker, tumbled 7.75 percent to close at NT$76.2 after trading resumed yesterday following a week-long suspension due to a capital reduction.
“Today’s selling of Hon Hai shares simply followed the downturn of the market and other market heavyweights in previous sessions,” MasterLink Securities Corp (元富證券) analyst Tom Tang (湯忠謙) said.
The stock has become technically fragile after yesterday’s plunge and there are no signs of Hon Hai shares finding strong technical support unless foreign institutional investors resume buying, Tang said.
Foreign institutional investors sold a net NT$2.35 billion of local shares yesterday after an aggregate net sell of NT$150.85 billion from Oct. 1 to Thursday, Taiwan Stock Exchange data showed.
Additional reporting by AFP
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to