The TAIEX yesterday slumped as it widened its decline from a January high to more than 19 percent and is just points away from a so-called bear market.
The index closed 2.7 percent lower yesterday, making it the worst performer in Asia. It was dragged by chipmakers after Bank of America took a cautious view on the industry’s growth prospects.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which accounts for more than one-quarter of the index’s weighting, dropped 3.05 percent to close at NT$476 yesterday.
Photo: Kelson Wang, Taipei Times
The TAIEX tumbled 2.72 percent to 14,825.73.
Facing headwinds of rate hikes by global central banks, tech-heavy stock markets in Taiwan and South Korea have been the worst performers in Asia this quarter, falling more than 15 percent.
Foreign investors net sold about US$16 billion of Taiwanese stocks during the three-month period, the most among emerging markets in Asia excluding China.
Deputy Minister of Finance Juan Ching-hwa (阮清華), executive secretary of the National Financial Stabilization Fund, said the fund would continue to closely monitor the stock market to see whether it needs to step in.
The Taiwan Stock Exchange said in a statement that it would adopt stabilizing measures if there are “irrational” declines in the stock market.
Societe Generale SA yesterday downgraded the nation’s stocks to “underweight” from “neutral,” citing external risks, including tighter financial conditions and fears of slower global growth.
“Global tech stocks are facing P/E [price/earning] re-rating, mainly due to recession and inflation concerns,” Capital Securities Corp (群益金鼎證券) senior manager Diana Wu said. “It’s a global issue, as rate hikes normally hit tech stocks. Investors are withdrawing cash from TSMC and other Taiwan tech stocks.”
FIVE-YEAR WINDOW? A defense institute CEO said a timeline for a potential Chinese invasion was based on expected ‘tough measures’ when Xi Jinping seeks a new term Most Taiwanese are willing to defend the nation against a Chinese attack, but the majority believe Beijing is unlikely to invade within the next five years, a poll showed yesterday. The poll carried out last month was commissioned by the Institute for National Defense and Security Research, a Taipei-based think tank, and released ahead of Double Ten National Day today, when President William Lai (賴清德) is to deliver a speech. China maintains a near-daily military presence around Taiwan and has held three rounds of war games in the past two years. CIA Director William Burns last year said that Chinese President Xi Jinping
President William Lai (賴清德) yesterday said that China has “no right to represent Taiwan,” but stressed that the nation was willing to work with Beijing on issues of mutual interest. “The Republic of China has already put down roots in Taiwan, Penghu, Kinmen and Matsu,” Lai said in his first Double Ten National Day address outside the Presidential Office Building in Taipei. “And the Republic of China and the People’s Republic of China [PRC] are not subordinate to each other.” “The People’s Republic of China has no right to represent Taiwan,” he said at the event marking the 113th National Day of
SPEECH IMPEDIMENT? The state department said that using routine celebrations or public remarks as a pretext for provocation would undermine peace and stability Beijing’s expected use of President William Lai’s (賴清德) Double Ten National Day speech today as a pretext for provocative measures would undermine peace and stability, the US Department of State said on Tuesday. Taiwanese officials have said that China is likely to launch military drills near Taiwan in response to Lai’s speech as a pretext to pressure the nation to accept its sovereignty claims. A state department spokesperson said it could not speculate on what China would or would not do. “However, it is worth emphasizing that using routine annual celebrations or public remarks as a pretext or excuse for provocative or coercive
CONCERNS: Allowing the government, political parties or the military to own up to 10 percent of a large media firm is a risk Taiwan cannot afford to take, a lawyer said A Chinese Nationalist Party (KMT) legislator has proposed amendments to allow the government, political parties and the military to indirectly invest in broadcast media, prompting concerns of potential political interference. Under Article 1 of the Satellite Broadcasting Act (衛星廣播電視法), the government and political parties — as well as foundations established with their endowments, and those commissioned by them — cannot directly or indirectly invest in satellite broadcasting businesses. A similar regulation is in the Cable Radio and Television Act (有線廣播電視法). “The purpose of banning the government, political parties and the military from investing in the media is to prevent them from interfering
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