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Taiwan shares hit by volatility of global markets

Taiwan shares hit by volatility of global markets

Taipei, June 1 (CNA) Shares in Taiwan trended lower Monday as investors took cues from the losses on Wall Street and major European markets such as France and Germany, amid lingering concerns over the debt situation in Greece, dealers said. A downward revision of the first-quarter gross domestic product (GDP) data of the United States, the world's largest economy, raised worries over the global economic fundamentals, while market sentiment also turned cautious ahead of the release of May sales data by local listed companies, dealers said. While the daily fluctuation limit in the equity market was raised from 7 percent to 10 percent with effect from Monday, there was no escalation of selling as many investors remained on the sidelines, dealers said. The weighted index on the Taiwan Stock Exchange closed down 75.38 points, or 0.77 percent, at 9,625.69, after moving between 9,589.09 and 9,692.34. Turnover totaled NT$91.24 billion (US$2.97 billion) during the session. The market opened down 0.13 percent and fell to the day's low in a knee-jerk reaction to the losses on the global markets amid fears that Greece would not be able to reach an agreement with its creditors in time to solve its debt problems, dealers said. The bellwether electronics led the downturn of the broader market as investors appeared worried about global demand after the U.S. revised its first-quarter GDP growth to minus 0.7 percent, dealers said. However, some bargain hunting emerged, capping the losses after the index briefly fell below 9,600 points, they said. "The local bourse remained haunted by negative leads from overseas. Judging from the moderate turnover today, investors were not prompted by the bigger fluctuation limits to sell more shares during the session," Marbo Securities Investment Consulting analyst Chang Chih-cheng said. The maximum daily limit was revised after 25 years, in an effort by the country's Financial Supervisory Commission to bring the local equity market more in line with foreign markets and attract greater international interest. The bellwether electronics sector closed down 1.01 percent Monday, and the semiconductor sub-index also ended 1.01 percent lower amid concerns over Taiwan Semiconductor Manufacturing Co.'s (TSMC, ???) sales growth in the third quarter of this year. TSMC, the most heavily weighted stock on the local bourse, fell 0.68 percent to close at NT$145.00, off an earlier high of NT$144.00. TSMC is expected to post a 3 percent sequential sales increase for the July-September period due to customers' inventory adjustments, according to a UBS Securities forecast, but other foreign brokerages have projected an 8 percent increase. Led by TSMC, integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. (???) dropped 1.59 percent to end at NT$43.30, and rival Siliconware Precision Industries Co. (??) shed 3.35 percent to close at NT$49.10. Smartphone vendor HTC Corp. (???) fell 4.85 percent to finish at NT$98.00 after local media reported that the company's suppliers have lowered their forecast for shipments of its flagship HTC One M9 smartphone by 30 percent to only 3.2 million units for the entire 2015. Bucking the downturn on the broader market, smartphone camera lens supplier Largan Precision Co. (???) rose 1.02 percent to close at NT$3,455.00, giving some support to the index, amid optimism about orders from Apple Inc. "The local equity market is likely to remain in the doldrums at least until June 10, the deadline for the high tech companies here to report their May sales data," Chang said. (By Frances Huang)


Updated : 2021-09-20 12:43 GMT+08:00