The TAIEX yesterday fell 177.59 points following overnight losses on US markets and growing inflation concerns. Selling focused on shipping stocks and was seen almost across the board.
“Volatility on the US markets dampened market confidence here, so the local main board came under pressure soon after the market opened and the weakness continued into the end of the session,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said.
“Growing international crude prices raised worries about inflation and also boosted fears over the impact on a global economic recovery amid COVID-19,” Huang added.
The TAIEX closed down 1.07 percent at 16,462.84. Turnover totaled NT$278.299 billion (US$9.89 billion), with foreign institutional investors selling a net NT$16.76 billion of shares on the main board.
Huang said that non-tech stocks were the target of selling, led by the shipping industry.
The transportation sector, where major shipping stocks are traded, plunged 7.55 percent. Container cargo shipper Yang Ming Marine Transport Corp (陽明海運) fell 9.71 percent to NT$87.4, Evergreen Marine Corp (長榮海運) lost 9.5 percent to NT$90.5 and Wan Hai Lines Ltd (萬海航運) dropped 9.44 percent to NT$153.5.
Bulk cargo shipper U-Ming Marine Transport Corp (裕民航運) plunged 10 percent — the daily limit — to NT$65.7.
“Retail investors favored margin trading to buy shipping stocks and now heavy losses among these stocks triggered margin calls, leading investors to cut their holdings,” Huang said.
Evergreen Marine shares sat on more than NT$30 billion in margin trading, potentially paving the way for more margin calls, he said.
Losses on the broader market tapered off after the bellwether electronics sector rallied from an earlier downturn with the help of late-session buying.
“The bright spot was that TSMC recouped all of its earlier losses,” Huang said, referring to contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
Shares of TSMC closed unchanged at NT$575, after hitting a low of NT$564. Led by TSMC — the most heavily weighted stock on the local market — the electronics index closed down 0.84 percent.
“Judging from a weaker [New] Taiwan dollar today, I suspect that the buying of TSMC came from government-led funds, instead of foreign institutional investors, in a bid to prevent the TAIEX from falling farther,” Huang said.
The TAIEX could see short-term technical support at about 16,162 points, which was an intraday low on Tuesday last week, Huang said, but investors “had better watch closely how fast crude oil prices and the benchmark 10-year US Treasury yield move higher, as the changes will move the global markets.”
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has
‘NO NEGOTIATING’: Acer spokesperson Steven Chung said customers in India whose data were affected were informed, while no user data in Taiwan was compromised PC vendor Acer Inc (宏碁) yesterday confirmed that it was hacked twice in one week — once in Taiwan and once in India — but denied any damage or leak of customer data. Acer spokesperson Steven Chung (鐘興維) said that the customers in India whose data were affected were informed, while no user data in Taiwan was compromised. The hackers have tried to initiate communication, but Acer has not responded, Chung said. “We are not going to negotiate and it is not company policy to pay ransom to hackers,” he said. Upon detecting the hack, Acer initiated all security protocols and conducted