The TAIEX yesterday slid 0.86 percent to a two-week low, taking its cue from the technology stock rout in US markets overnight amid mounting concern over the US-China trade war and sagging iPhone sales.
Investor sentiment was weak, despite strong fundamental reports by listed companies.
Aggregate revenue by companies listed on the main board rose 9.37 percent year-on-year to NT$21.46 trillion (US$694.32 billion) last quarter, the latest statistics provided by the Financial Supervisory Commission (FSC) showed.
Their combined net profits also grew at an annual rate of 13.49 percent to NT$1.74 trillion last quarter, the data showed.
The growth was attributable to strong demand for electronics components and a rebound in crude oil prices, which helped lift local petrochemical companies’ net earnings, the commission said.
Robust demand for memory chips and products also helped, it said.
The TAIEX closed down 84.7 points to 9,743.99 on turnover of NT$92.14 billion, after the Dow Jones Industrial Average fell 395.78 points overnight.
Asian stock markets were also hit by weak sentiment as Japan’s Nikkei 225 declined 1.09 percent and Hong Kong’s Hang Seng Index sank 2.02 percent.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the sole chip supplier to Apple Inc’s new iPhones, saw its shares tumble 1.8 percent to NT$218.
TSMC has lost NT$506 billion in market value since early this month, when it was trading at NT$235.50.
Hon Hai Precision Industry Co (鴻海精密), a major assembler of Apple’s iPhones, saw its shares plunge 3.27 percent to NT$71 after Apple shares sank 3.96 percent overnight amid reports that it has reduced orders for its latest iPhone models, dealers said.
Selling in Hon Hai also spread to other “Apple concept stocks” amid worries that poor shipments of the three latest iPhone models — the iPhone XS, the iPhone XS Max and the iPhone XR — would affect their sales, they said.
“Apple is a very important client to Hon Hai,” Concord Securities (康和證券) analyst Kerry Huang said. “It was no surprise that the report on the order reduction for the new iPhones prompted investors to dump the stock and other Apple suppliers in Taiwan.”
The Wall Street Journal on Monday reported that due to weaker-than-expected demand for the three new iPhones, which were unveiled in September, Apple has cut orders to its suppliers, in particular for the more affordable iPhone XR model, in recent weeks.
“I think the weaker-than-expected demand for the new iPhones came from lower shipments to China, dealing a big blow to Apple and its suppliers like Hon Hai,” Huang said.
Among other falling Apple suppliers, smartphone camera lens maker Genius Electronic Optical Co (玉晶光) saw its shares dip 1.76 percent to NT$194.50 and printed circuit board producer Flexium Interconnect Inc (台郡) dropped 0.76 percent to NT$78.20.
Shares of Apple’s camera lens supplier Largan Precision Co (大立光) bucked the trend, rising 2.47 percent to NT$3,315.
“Largan’s gains were technical after the stock had suffered heavy losses in recent sessions,” Huang said.
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