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Taiwan shares down sharply in mid-morning trading

Taiwan shares down sharply in mid-morning trading

Taipei, Sept. 23 (CNA) Shares in Taiwan came under heavy pressure Wednesday morning as investors reacted to steep declines in American and European markets overnight, with the index falling below the 8,300-point mark, dealers said. Selling focused on large-cap stocks in the bellwether electronics sector, in particular Taiwan Semiconductor Manufacturing Co. (TSMC, ???), sending the weighted index into a tailspin.
Taiwan's over-the-counter market appeared resilient, however, as some investors moved their funds to that market as a safe haven, they said. As of 10:53 a.m., the weighted index on the Taiwan Stock Exchange had fallen 1.82 percent to 8,214.09 on turnover of NT$39.81 billion (US$1.21 billion) after the Dow Jones Industrial Average closed down 1.09 percent and the tech heavy Nasdaq index ended down 1.50 percent Tuesday. Outperforming the main board, the OTC index had lost 0.97 percent to 118.89. Among the falling market heavyweights, contract chip maker TSMC, the most heavily weighted stock in the local market, had lost 2.71 percent to NT$125.50, and integrated circuit designer MediaTek Inc. (???) had shed 3.85 percent to NT$250.00. In the non-high-tech sector, Fubon Financial Holding Co. (???) had fallen 1.47 percent to NT$53.70, and Cathay Financial Holding Co. (???) had lost 1.49 percent to NT$46.35. Among old economy shares, Formosa Plastics Corp. (??) had shed 2.27 percent to NT$69.00, and Nan Ya Plastics Corp. (??) had lost 3.18 percent to NT$57.80. "Without a solid TSMC, the local exchange is unlikely to fend off the impact of turmoil seen in global markets overnight," Hua Nan Securities analyst Kevin Su said. "As TSMC has fallen below the technical resistance of around NT$126.80, the stock has become technically fragile and so has the broader market." Su said there is considerable uncertainty over when global equity markets will stabilize, and market sentiment here has turned very cautious, prompting many investors to unload their holdings soon after Taiwan's stock exchange opened Wednesday. He said that in addition to feeling nervous about markets in the U.S. and Europe, investors here remained wary of volatility in Chinese markets amid concerns over how the economic slowdown in China will affect share prices there and in turn put pressure on other regional and even global markets. "If the global markets continue to suffer volatility, fears may grow over a possible increase in systematic risks, which could deal another blow to Taiwan's market in the near future," Su said, referring to a likely exodus of foreign funds out of regional markets, including Taiwan. (By Frances Huang)


Updated : 2021-04-22 05:41 GMT+08:00