Alexa
  • Directory of Taiwan

Taiwan shares plunge in mid-morning session

Taiwan shares plunge in mid-morning session

Taipei, May 21 (CNA) Taiwan shares took a beating in the mid-Thursday session after the country reported disappointing export order data for April, which raised concerns about the economic climate, dealers said. Downward pressure focused on large-cap stocks in both the electronics and non-high tech sectors to push down the index by more than 100 points initially, triggering loss-stop selling before the index recovered some of its earlier losses later, the dealers said. As of 10:52 a.m., the weighted index on the Taiwan Stock Exchange had fallen 99.00 points, or 1.02 percent, at 9,586.31, on turnover of NT$54.54 billion (US$1.79 billion). The bellwether electronics sector was down 0.65 percent, while the financial sub-index was down 1.85 percent. "Opening today's newspapers, investors found overwhelmingly negative leads, in particular the weak April export order report. They had no choice but to turn downbeat about the economic fundamentals," Hua Nan Securities analyst Kevin Su said. The Ministry of Economic Affairs reported a day earlier that Taiwan's export orders for April fell 4 percent from a year earlier, marking the first drop since July 2013. According to the ministry, the fall reflected a plunge in international oil prices, which sent petrochemical and rubber prices lower, while local electronics suppliers also faced fierce competition from emerging rivals in China and witnessed their orders falling. Orders placed by buyers from China and Hong Kong fell 10.3 percent in April. The month was the third consecutive month for export orders from China and Hong Kong to register a year-on-year decline. "The index fell below the 60-day moving average of around 9,650 points and trended even lower in the early session. Spotting the sell-off, more and more investors simply followed suit to deal another blow to the broader market," Su said. "Since the heavy selling just started, it remains to be seen where the broader market will find any technical support any time soon," Su said. Su said that investors largely punished large-cap stocks, sending the broader market into a tailspin. Among the falling market heavyweights, Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock in the local market, had fallen 1.02 percent to NT$145.00, with 22.62 million shares changing hands as of 10:52 a.m. Smartphone camera lens supplier Largan Precision Co. (???) had lost 1.20 percent to NT$3,290.00, but integrated circuit designer MediaTek Inc. (???) bucked the downturn, up 0.13 percent at NT$400.00 on bargain hunting after recent consolidation. Su said the financial sector was hit by worries about loans extended to property developer Farglory Dome, the contractor of the Taipei Dome construction, after the Taipei city government ordered a halt to the construction work of the project. Cathay Financial Holding Co. (???) had fallen 2.95 percent to NT$62.50, while Fubon Financial Holding Co. (???) had lost 2.53 percent to NT$53.90 as of 10:52 a.m. (By Frances Huang)


Updated : 2021-09-20 22:35 GMT+08:00