Taiwanese shares yesterday dropped more than 160 points, as investors rushed to lock in profits following a record rise on the US’ three major indices at the end of last week, while the profit-taking hit non-tech stocks the hardest, particularly shipping and steel stocks, dealers said.
The TAIEX ended down 169.36 points, or 0.96 percent, at the day’s low of 17,403.56, while turnover totaled NT$455.65 billion (US$16.23 billion), with foreign institutional investors selling a net NT$18.36 billion of shares on the main board, Taiwan Stock Exchange data showed.
“Day trading again destabilized shipping and steel stocks,” Cathay Futures Consultant Co (國泰證期顧問) analyst Tsai Ming-han (蔡明翰) said. “After their significant rise over the past few months, those stocks are coming under pressure whenever they make early gains.”
In day trading, investors buy and sell a stock in the same session.
In the transportation sector, which plunged 6.85 percent, container cargo shipper Wan Hai Lines Ltd (萬海航運) fell 9.79 percent, Evergreen Marine Corp (長榮海運) fell 8.77 percent and Yang Ming Marine Transport Corp (陽明海運) fell 6.53 percent.
In the steel sector, which dropped 1.55 percent, China Steel Corp (中鋼) lost 1.38 percent, Tung Ho Steel Enterprise Co (東和鋼鐵) lost 1.64 percent and Chung Hung Steel Corp (中鴻鋼鐵) lost 3.67 percent.
Elsewhere among old economy stocks, textile brand Far Eastern New Century Corp (遠東新世紀) fell 2.60 percent, Formosa Plastics Corp (台塑) fell 2.07 percent and Nan Ya Plastics Corp (南亞塑膠) fell 2.05 percent.
“It’s a pity that money did not flow from old economy stocks to major tech stocks today,” Tsai said. “Many investors are still waiting for other earnings reports.”
Contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) declined 0.85 percent and led the electronics sector to end down 0.21 percent, with IC designer MediaTek Inc (聯發科) dropping 1.07 percent and iPhone assembler Hon Hai Precision Industry Co (鴻海精密) falling 0.45 percent.
Flatpanel makers were boosted by increased demand for televisions during the Tokyo Olympic Games, with AU Optronics Corp (友達光電) rising 2.17 percent.
“After the market’s fall today, I think more losses are likely, as the TAIEX hovers around 17,000 points,” Tsai said.
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