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Local bourse ends down; TSMC falls on CLSA report

Local bourse ends down; TSMC falls on CLSA report

Taipei, Jan. 14 (CNA) Shares in Taiwan closed down Wednesday amid lingering concerns over further volatility on Wall Street as selling focused on large-cap electronics stocks, dealers said. Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, came under pressure after a CLSA report said that the company will not serve as a primary supplier of Apple Inc.'s A9 processor, while PC vendor Asustek Computer Inc. fell sharply amid fears over its foreign exchange losses, the dealers said. Old economy stocks, in particular in the food sector, encountered strong selling due to a bird flu outbreak in Taiwan, while the petrochemical sector was hit by a further downtrend in international crude oil prices, they added. The weighted index on the Taiwan Stock Exchange ended down 51.57 points, or 0.55 percent, at 9,180.23, after moving between 9,161.71 and 9,242.20, on turnover of NT$91.997 billion (US$2.89 billion). The market opened up 9.78 points and rose to the day's high on a mild technical rebound from losses seen a session earlier, the dealers said. But with the index briefly breaching the 9,200-point mark, selling set in, especially in electronics heavyweights, including TSMC, to drag down the broader market into negative territory. The weakness continued into the end of the session, they said. Mega International Investment Services Corp. analyst Alex Huang said that Wall Street encountered a volatile session overnight after the Dow Jones Industrial Average fell from its earlier gains of more than 300 points to close slightly lower. "The wild movement on Wall Street made many investors here wary of further volatility in the U.S. market," Huang said. "That's why after the local index broke 9,200 points, selling followed." Huang said that TSMC and other large-cap high-tech stocks served as the culprit for the weakness of the local bourse, and their downturns appeared more visible in the late-trading session. TSMC, the world's largest contract chip maker, shed 1.89 percent to close at NT$130.00 with 48.77 million shares changing hands after CLSA said that Samsung Electronics Co. of South Korea and U.S.-based Globalfoundries Inc. will get 80 percent of the A9 processor orders and TSMC will only get 20 percent. "Many investors are eager to get more information about the Apple orders in a TSMC investor conference scheduled for Thursday," Huang said. Among other losing electronics heavyweights, Asustek shed 4.80 percent to close at NT$317.00 amid fears that the weakness of the Russian ruble and the euro will lead the PC vendor to report foreign exchange losses in the fourth quarter of last year. "Due to concerns over the future movement of the local bourse, investors also kept their hands off the old-economy sector today, so the local index failed to bounce back and the downturn continued till the end of the session," Huang said. In the food sector, which closed down 1.39 percent, Charoen Pokphand Enterprise (Taiwan) Co. lost 1.02 percent to end at NT$24.35, and Uni-President Enterprises Corp. fell 2.18 percent to close at NT$49.40. Among falling petrochemical stocks hit by a plunge in crude oil prices, Formosa Plastics Corp. fell 1.74 percent to close at NT$73.20 and Nan Ya Plastics Corp. lost 0.92 percent to end at NT$64.40. (By Frances Huang)


Updated : 2021-09-19 20:15 GMT+08:00