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Taiwan shares end below 8,200 points

Taiwan shares end below 8,200 points

Taipei, Sept. 23 (CNA) Shares in Taiwan closed below the 8,200 point level Wednesday amid lingering concerns over volatility in the global equity markets and worries over a slowdown in the Chinese economy, the second-largest in the world, dealers said. Selling focused on market heavyweights across the board, in particular in the semiconductor sector, led by a plunge suffered by the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC, ???), to send the weighted index on the main board into a tailspin, the dealers said. The weighted index closed down 172.50 points, or 2.06 percent, at 8,193.42, after moving between 8,186.22 and 8,310.82, on turnover of NT$79.76 billion (US$2.43 billion). The market opened down 0.95 percent in a knee-jerk reaction to a 1.09 percent decline and a 1.50 percent drop on the Dow Jones Industrial Average and the tech-heavy NASDAQ index, respectively, overnight as investors were wary of global volatility, the dealers said. Selling mounted after China's manufacturing activity fell to a six-and-a-half year low for September, which raised concerns about the pace of China's economic development, prompting investors here to dump more of their holdings to drag down the weighted index below 8,200 points at the close, they said. "Market sentiment here was hurt by the weakness in global markets. And even worse, China's weak purchasing managers' index (PMI) dealt another blow to local investor confidence," Concord Securities analyst Kerry Huang said. The preliminary Caixin/Markit China manufacturing PMI fell 47.0 for September, down from a final reading of 47.3 recorded in August. "Looking at the losses suffered by other regional markets, including Hong Kong, fears over a deteriorating China economy have been on the rise, which has made many investors at home and abroad very nervous," Huang said. Huang said that selling spread to all of the sectors on the local main board with the bellwether electronics sector faced with stiff downward pressure. The electronics sub-index closed down 2.48 percent and the semiconductor sub-index ended down 3.47 percent on the back of larges selling from foreign institutional investors. According to the TWSE, foreign institutional investors sold a net NT$15.72 billion- worth of shares on the local main board Wednesday after net buying of NT$730 million recorded a session earlier. TSMC, the most heavily weighted stock in the local market, fell 3.49 percent to close at NT$124.50, with 32.95 million shares changing hands. Market analysts said that since TSMC fell to below the nearest support level of around NT$126.80, the stock has become technically fragile. Among other high-tech stocks, integrated circuit designer MediaTek Inc. (???) fell 3.46 percent to end at NT$251.00. IC packaging and testing services provider Siliconware Precision Industries Co. (??) shed 5.58 percent to close at NT$38.90 after a rival, Advanced Semiconductor Engineering Inc. (ASE, ???), acquired a 25 percent stake in the company through a tender offer, amid caution about the effect of the buy-in deal by ASE. In the financial sector, CTBC Financial Holding Co. (???) fell 2.43 percent to close at NT$18.10 and Fubon Financial Holding Co. (???) shed 2.39 percent to end at NT$53.20. In the old economy sector, food maker Uni-President Enterprises Corp. (??) lost 3.68 percent to close at NT$55.00, and Eclat Textile Co. (??) fell 2.26 percent to end at NT$520.00. "Investors should keep alert over the likelihood that the index will fail to stand above the 20-day moving average of 8,184. If so, the index could test 8,000 points in the near term amid weak sentiment," Huang said. (By Frances Huang)


Updated : 2021-01-16 13:55 GMT+08:00