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Taiwan shares ends down amid losses among Apple concept stocks

Taiwan shares ends down amid losses among Apple concept stocks

Taipei, July 22 (CNA) Shares in Taiwan closed lower Wednesday after Taiwanese suppliers to Apple Inc. took a beating in the wake of the U.S.-based consumer electronics giant's disappointing results and lower-than-expected sales guidance, dealers said. The broader electronics sector came under pressure amid fears that more negative leads will come out during the current earnings season in the U.S. market, which could drag down the tech-heavy NASDAQ index and send ripples through the Taiwan market, the dealers said. The weighted index on the Taiwan Stock Exchange closed down 87.26 points, or 0.96 percent, at 8,918.70, after moving between 8,896.10 and 8,968.39 on turnover of NT$77.92 billion (US$2.50 billion). The market opened down 0.56 percent in the wake of a 1 percent drop on the Dow Jones Industrial Average overnight, and selling escalated with Apple concept stocks in focus as investors here took cues from Apple's disappointing results and forecast to dump the U.S. firm's Taiwanese suppliers, the dealers said. Apple reported its results after the U.S. market closed. Its shares fell 6.85 percent in after-hours trading on Wall Street. "Investors here feared that Apple shares will fall sharply after Wall Street opens later in the day following the after-hours plunge," Mega International Investment Services Corp. analyst Alex Huang said. "Apple's results failed to amaze investors overnight. It was no surprise that investors in the local market cut their holdings in electronics today, and these Apple suppliers were placed under the spotlight," Huang said. Apple reported its sales and net profit for the three months to June rose 33 percent and 38 percent, respectively, from a year earlier, but shipments of iPhones missed a market forecast of 48.80 million units to stand at 47.50 million units. "In addition to Apple, Microsoft Corp.'s results disappointed the market. So investors were afraid that poorer earnings reports will come out from high-tech firms on Wall Street to create more jitters in the global financial markets," Huang said. After Wall Street closed Tuesday, Microsoft reported the largest-ever quarterly net loss of US$3.2 billion in the past three months. Among the losing Apple concept stocks, Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, fell 1.56 percent to close at NT$94.80 and metal casing supplier Catcher Technology Co. (??) shed 4.77 percent to end at NT$359.00. Also in the high-tech sector, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, lost 1.07 percent to close at NT$139.00, while contract notebook computer producer Compal Electronics Inc. (??) fell 6.02 percent to end at NT$21.85. Selling also spread to old economy stocks. Among them, food maker Uni-President Enterprises Corp. (??) fell 2.98 percent to close at NT$55.30, and Nan Ya Plastics Group (??) lost 1.77 percent to end at NT$66.70. "After the index fell below the five-day moving average of 9,024 points yesterday, the market turned technically weaker. Today's losses made the technical conditions even worse," Huang said. "It is likely that the market will trend further lower until technical support emerges at around 8,800 points," he said. (By Frances Huang)


Updated : 2021-09-29 10:58 GMT+08:00