The TAIEX slid again yesterday, declining more than 20 percent from a January high and entering a bear market.
The weighted index closed 3.26 percent lower in Taipei at 14,343.08 points. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which accounts for more than one-quarter of the index’s weighting, declined 4.73 percent to close at NT$453.5 amid broad weakness in the chip sector following Micron Technology Inc’s disappointing forecasts.
Tech-heavy equity markets in Taiwan and South Korea were among the worst performers in Asia last quarter, both down more than 15 percent amid rate hikes by global central banks. Foreign investors net sold more than US$16 billion of Taiwanese stocks during the three-month period, the most among emerging Asian markets outside of China.
Photo: CNA
“Taiwan stocks declined due to several negatives, including global inflation concerns, growth slowdown fears and rate hikes, which lead to global funds returning to the US from emerging markets,” President Capital Management (統一投顧) chairman Li Fang-kuo (黎方國) said. “The downward trend of Taiwan stocks will continue, so investors should avoid catching the falling knife.”
The TAIEX dropped 6.3 percent this week, the biggest weekly decline in 13 months.
Investor sentiment soured on tech stocks worldwide due to fears of a global recession and a cautious outlook for the semiconductor sector.
The Taiwan Stock Exchange said in a statement on Thursday it would adopt stabilizing measures if needed when there are “irrational” declines in the stock market.
Separately, Deputy Minister of Finance Frank Juan (阮清華), executive secretary of the National Financial Stabilization Fund, said the fund would continue to monitor the stock market to determine if it needs to step in.
SinoPac Securities Investment Service Corp (永豐投顧) said in a note that if the administration of US President Joe Biden cancels tariffs on Chinese goods, some of which are due to expire on Wednesday next week, it would boost markets.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more