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Taiwan shares come under pressure in mid-morning session

Taiwan shares come under pressure in mid-morning session

Taipei, July 3 (CNA) Taiwan shares dropped sharply in Friday's mid-morning session, led by large-cap stocks across the board amid lingering concerns over the debt problems in Greece, as that country prepares to hold a referendum on its creditors' proposals, dealers said. The current selling also reflected fears that the Shanghai stock exchange will continue to trend lower after a recent sell-off, which could create more volatility in the regional markets, including Taiwan, dealers said. As of 10:50 a.m., the weighted index on the Taiwan Stock Exchange had lost 89.92 points or 0.96 percent, dropping to 9,289.93 points on turnover of NT$43.37 billion (US$1.40 billion). The local index fell more than 100 points before recovering to some extent, but still came under pressure. "Greece's debt situation is still weighing on market sentiment," Hua Nan Securities analyst Henry Miao said. "Before Sunday's referendum, many investors are pocketing their gains and have stepped away from the trading floor." On Sunday, the people of Greece will decide whether to accept the conditions put forth by the country's creditors. There are rising fears that if Greeks vote no, the country would exit the euro zone, which would affect the global financial system. Greece defaulted on its debt repayment to the International Monetary Fund on June 30. The country still needs about 51.9 billion euros (US$57.09) in bailout funds between October 2015 and December 2018. In addition to the jitters over Greece, Miao said, the local market may have been affected by heavy losses on the Shanghai market, which has fallen below 4,000 points, a psychological level to investors. "Although Chinese authorities have come up with a series of stimulus measures, the China equity market is still dropping," Miao said. "A lot of Taiwanese investors have poured funds into the China market and if it gets trapped there, the Taiwan market could see some cash squeezing." Judging from the current sell-off among the market heavyweights, it seems that foreign institutional investors are on the sell side at the moment, he said. "Foreign institutional investors are worried that the uncertainty over the Greek situation will send more ripples through the world market," Miao said. In the electronics sector, Taiwan Semiconductor Manufacturing Co. (???), the most heavily weighted stock on the local market, had dropped 0.35 percent to NT$141.00 as of 10:50 a.m. Friday. Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, had fallen 0.61 percent to NT$97.40. Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., had dropped 1.21 percent to NT$3,660.00 after the stock closed at a record high of NT$3,705.00 Thursday. In the financial sector, CTBC Financial Holding Co. (???) had fallen 1.44 percent to NT$24.00, and Mega Financial Holding Co. (???) had lost 1.61 percent, falling to NT$27.55. (By Frances Huang)


Updated : 2021-09-20 17:31 GMT+08:00