Taiwan stocks dropped for a third day, with the key index losing 1.3 percent in a span of five minutes, after a second earthquake struck the island in less than a day.
Chipmakers paced declines after a quake measuring 6.2 in magnitude hit the northeast coast of the island at 10:35am. The quake followed a 6.3 rumble late Wednesday night off the northeastern coast. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said it needs time to inspect its equipment for damage caused by the tremor.
The TWSE Index fell 90.52, or 1.7 percent, to 5119.19. Within the index, 348 stocks fell, 88 rose, and 72 were unchanged. Trade at NT$46.5 billion (US$1.4 billion) was 42 percent lower than the six-month daily average of NT$80.5 billion.
"Some electronics companies may have been affected," said Karen Lin, who manages about NT$300 million (US$8.7 million) in Taiwan stocks at Prudential Securities Investment Trust Co (
"General investor confidence is fickle and sensitive enough for it to have an impact on the market." Stocks also fell after the Taiwan dollar dropped to a two-week low yesterday against the dollar, eroding the value of foreign investors' stock holdings.
Chipmakers dropped after Taiwan's Central Weather Bureau said an earthquake of 6.2 magnitude hit the northeast coast at 10:35am. Chip production may have been affected by the quake, which had a magnitude of 5 in Taipei and 4 in Hsinchu County, where most semiconductor plants are situated.
TSMC, the largest made-to-order chipmaker, fell NT$1.5, or 1.6 percent, to NT$92.50. United Microelectronics Co (UMC, 聯電), its smaller rival, fell NT$1, or 1.9 percent, to NT$52. Winbond Electronics Corp (華邦電子), Taiwan's third-biggest chipmaker by market capitalization, fell NT$1.4, or 4.5 percent, to NT$29.70.
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