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Taiwan shares dive, down over 1%, in morning session

Taiwan shares dive, down over 1%, in morning session

Taipei, June 4 (CNA) Taiwan shares came under heavy pressure in the Thursday morning trading session with the bellwether electronics sector in focus amid lingering concerns over the slow season effects in the second quarter, dealers said. As of 11:41 a.m., the weighted index on the Taiwan Stock Exchange had fallen 1.38 percent to 9,424.69 points on turnover of NT$75.91 billion (US$2.46 billion). The electronics sub-index was down 1.87percent at 368.08 points. "It is possible that foreign institutional investors stayed on the sell side this morning after they boosted the number of net short position contracts in the futures market by about 10,000 yesterday," Ta Ching Securities analyst Andy Hsu said. "They simply unloaded large-cap stocks in the high-tech sector as the market has feared that electronics firms will report poor sales in a slow season of the current quarter," Hsu said. Taiwan Semiconductor Manufacturing Co. (TSMC, ???) had lost 1.75 percent to NT$140.50 after foreign institutional investors sold a net 1.14 million TSMC shares Wednesday. The stock was also affected by a HSBC Securities report which said that the chip maker's sales growth rate could fall to 10-15 percent over the next years from 20-30 percent seen in the past few years due to a smaller customer base. Selling spread to other semiconductor stocks. Among them, integrated circuit packaging and testing firm Siliconware Precision Industries Co. (??) had lost 1.26 percent to NT$47.00, and rival Advanced Semiconductor Engineering Inc. (ASE) had dropped 1.41 percent to NT$42.05. Largan Precision Co. (???) had lost 4.92 percent to NT$3,285.00, although many investors remained upbeat about its earnings outlook for the second half of this year due to an expected launch of the next generation of the iPhone. "But, for now, investors preferred to cut holdings after the broader market failed to stage a rebound in recent sessions. It seemed that the selling was driven by panic," Hsu said. Hsu said that if the index cannot to manage itself to return to the 120-day moving average of 9,476 points by the end of the current session, more downward selling could follow. (By Frances Huang)


Updated : 2021-09-23 17:46 GMT+08:00