Taiwanese shares moved sharply lower yesterday, with the TAIEX closing down more than 100 points as investors were shocked by heavy losses on US markets amid worries over an economic slowdown in the US and trade tensions between Washington and Beijing, dealers said.
Large-cap stocks in the bellwether electronics sector led the downturn, reflecting weakening global demand for tech gadgets, they said.
As selling spread to old economy and financial stocks, the TAIEX ended down 113.34 points, or 1.16 percent, at 9,647.54, on turnover of NT$98.07 billion (US$3.18 billion).
Foreign institutional investors sold a net NT$9.05 billion of shares on the main board, Taiwan Stock Exchange data showed.
“Other regional markets followed the Wall Street fall and Taipei was no exception,” Xincheng International Investment Consultant (信誠環球投顧) analyst Chang Chih-cheng (張志誠) said, referring to falls in Tokyo, Hong Kong and Seoul.
“Moreover, market sentiment remained under pressure from the trade dispute between Washington and Beijing,” Chang said. “The arrest of the chief financial officer of China-based Huawei Technologies Co (華為) by Canada at the request of the US has made the trade dispute even more complex.”
The electronics sector was the largest victim of rising concerns over global demand for tech devices, in particular the latest iPhones, amid fears over an economic slowdown in the US, Chang said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) lost 0.9 percent to close at NT$219; iPhone assembler Hon Hai Precision Industry Co (鴻海精密) shed 2.03 percent to end at a seven-year low of NT$67.70; Largan Precision Co (大立光), a smartphone camera lens supplier to Apple Inc, fell 1.45 percent to close at NT$3,055; and Catcher Technology Co (可成), a metal casing supplier to Apple, dropped 6.99 percent to end at NT$219.50.
Weakness was also seen among large-cap stocks in the non-tech sector, with Asia Cement Corp (亞泥) falling 1.49 percent to close at NT$33; food brand Uni-President Enterprises Corp (統一企業) closing down 1.02 percent at NT$68.20; and Formosa Plastics Corp (台塑) sliding 1 percent to NT$99.50.
In the financial sector, Fubon Financial Holding Co (富邦金控) ended down 1.04 percent at NT$47.50 and Cathay Financial Holding Co (國泰金控) closed 1.14 percent lower at NT$47.60.
“Amid global volatility, the local market could suffer more losses,” Chang said. “But as long as the local main board manages to close above the 9,588 points level, an intraday low on Oct. 31, it should be technically stable.”
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