The nation's benchmark index suffered its biggest decline in more than three years as fresh Wall Street concerns over the US home loan market sent the region tumbling, dealers said.
The TAIEX slumped 395.37, or 4.26 percent, to close at 8,891.88 yesterday, the biggest drop since May 17, 2004. About six stocks fell for every one that gained. Futures due in August tumbled 5.2 percent to 8,695.
Overseas investors dumped a net of NT$49 billion (US$1.5 billion) in shares yesterday alone, the third-biggest selloff in the history of the local equity market.
Yuanta Core Pacific Capital Management Co (
The performance of regional markets meant that hopes for a technical rebound on the local bourse were premature, he said.
However, Tam noted that the local index may be defended at the quarterly moving average of around 8,700 points because of ample liquidity.
Hon Hai Precision Industry Co (
"Apple has generated strong enthusiasm for its iPhone and shares of its suppliers have benefited from that excitement," said Phil Chen (
Hon Hai, which provides assembly services for Apple, lost NT$16, or 5.9 percent, to NT$256. Foxconn Technology Co (富士康科技), a maker of metal casings for mobile phones, plunged NT$25, or 6.8 percent, to NT$343. Shares of Hon Hai have risen 65 percent in the past 12 months, while Foxconn's have climbed 74 percent.
Some investors are speculating that Apple is reducing production of either its popular iPod music players or the iPhone, perhaps by as much as 50 percent, said Gene Munster, an analyst at Piper Jaffray Cos in Minneapolis. The iPhone, which combines a music player with a cellphone and Web browser, went on sale on June 29.
Shares of Cupertino, California-based Apple dropped the most in more than two years in US trading, falling 6.8 percent to US$131.76.
Apple spokeswoman Natalie Kerris said the firm does not comment on rumors and speculation.
Taiwan Semiconductor Manu-facturing Co (TSMC, 台積電) led declines among exporters on renewed concern that falling home prices and a rout in the US subprime loan industry would curb growth in the world's largest economy.
TSMC, the world's biggest supplier of made-to-order chips, slumped NT$3.70, or 5.9 percent, to NT$61.30. The company makes about three-quarters of its sales from US buyers. MediaTek Inc (聯發科), the world's largest supplier of chips for DVD players, dropped NT$24, or 4.1 percent, to NT$569.
DEFENSE: The first set of three NASAMS that were previously purchased is expected to be delivered by the end of this year and deployed near the capital, sources said Taiwan plans to procure 28 more sets of M-142 High Mobility Artillery Rocket Systems (HIMARS), as well as nine additional sets of National Advanced Surface-to-Air Missile Systems (NASAMS), military sources said yesterday. Taiwan had previously purchased 29 HIMARS launchers from the US and received the first 11 last year. Once the planned purchases are completed and delivered, Taiwan would have 57 sets of HIMARS. The army has also increased the number of MGM-140 Army Tactical Missile Systems (ATACMS) purchased from 64 to 84, the sources added. Each HIMARS launch pod can carry six Guided Multiple Launch Rocket Systems, capable of
TRAJECTORY: The severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday, and would influence the nation to varying degrees, a forecaster said The Central Weather Administration (CWA) yesterday said it would likely issue a sea warning for Tropical Storm Podul tomorrow morning and a land warning that evening at the earliest. CWA forecaster Lin Ting-yi (林定宜) said the severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday. As of 2pm yesterday, the storm was moving west at 21kph and packing sustained winds of 108kph and gusts of up to 136.8kph, the CWA said. Lin said that the tropical storm was about 1,710km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, with two possible trajectories over the next one
Tropical Storm Podul strengthened into a typhoon at 8pm yesterday, the Central Weather Administration (CWA) said, with a sea warning to be issued late last night or early this morning. As of 8pm, the typhoon was 1,020km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, moving west at 23kph. The storm carried maximum sustained winds of 119kph and gusts reaching 155kph, the CWA said. Based on the tropical storm’s trajectory, a land warning could be issued any time from midday today, it added. CWA forecaster Chang Chun-yao (張竣堯) said Podul is a fast-moving storm that is forecast to bring its heaviest rainfall and strongest
CRITICISM: It is deeply regrettable that China, which is pursuing nuclear weapons, has suppressed Taiwan, which is pursuing peace, a government official said Representative to Japan Lee Yi-yang (李逸洋) yesterday accused Beijing of interference after Taiwan’s official delegation to the Nagasaki Peace Memorial Ceremony in Japan was assigned seating in the “international non-governmental organizations [NGO]” area. “Taiwan is by no means an international NGO, but a sovereign nation that is active on the international stage,” Lee said. Lee and Chen Ming-chun (陳銘俊), head of the Taipei Economic and Cultural Office (TECO) in Fukuoka, attended the ceremony in Nagasaki yesterday, which marked the 80th anniversary of the atomic bombing of the city. That followed Lee’s attendance at the Hiroshima Peace Memorial Ceremony on Wednesday
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