Alexa
  • Directory of Taiwan

Taiwan shares extend losses on global economy worries

Taiwan shares extend losses on global economy worries

Taipei, Sept. 24 (CNA) Shares in Taiwan extended losses Thursday from a session earlier, as market sentiment was hurt by concerns over the slowing world economy and weakening global demand, dealers said. The worries were highlighted a day earlier by weaker-than-expected manufacturing activity figures in China, the second-largest economy in the world, which sparked selling, with large-cap stocks in focus, the dealers said. The silver lining was that Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock in the local market, appeared resilient, outperforming the broader market, as bargain hunters seized a move by the chip maker to upgrade its sales forecast for the third quarter as a reason to buy, they added. The weighted index on the Taiwan Stock Exchange closed down 70.32 points, or 0.85 percent, at 8,123.10, after moving between 8,101.90 and 8,257.14, on turnover of NT$82.01 billion (US$2.49 billion). The market opened up 0.46 percent and rose to the day's high on a technical rebound, led by TSMC, from a 2.06 percent drop seen the previous day, the dealers said. With the index briefly breaching the 8,200 point mark, selling set in, spreading from the bellwether electronics sector and the old economy sector, to push the broader market into the red and the weakness continued into the end of the session, the dealers said. "The market failed to stage a meaningful rebound today, so that the earlier gains gave way to lingering concerns over the global economy," Mega International Investment Services Corp. analyst Alex Huang said, referring to the latest disappointing factory activity data from China. The preliminary Caixin/Markit China manufacturing PMI fell 47.0 for September, down from a final reading of 47.3 recorded in August. The latest PMI figure hit a fresh low in six-and-a-half years. "China's PMI data was so bad that the impact kept exacerbating investors' confidence today, extending from yesterday," Huang said. "That's why investors tended to lock in their earlier gains and appeared reluctant to hold onto their stock for the moment." The electronics sub-index closed down 0.73 percent and the financial sector ended down 0.68 percent as many stocks in the two sectors fell victim to last-ditch selling in reflection of the fragile sentiment, the dealers said. Among the falling high-tech stocks, integrated circuit designer MediaTek Inc. (???) fell 5.98 percent to close at NT$236.00, and Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., lost 2.01 percent to end at NT$2,685.00. Largan is the most expensive stock in Taiwan. IC packaging and testing services provider Siliconware Precision Industries Co. (??) shed 2.31 percent to close at NT$38.00 after shareholder Advanced Semiconductor Engineering Inc. (ASE, ???) voiced opposition to a stock swap deal with Hon Hai Precision Industry Co. (??). ASE, which ended down 1.44 percent at NT$34.15, had just completed a tender offer to buy a 25 percent stake in Siliconware. In the financial sector, E. Sun Financial Holding Co. (???) lost 1.81 percent to close at NT$18.95, and Mega Financial Holding Co. (???) fell 0.87 percent to end at NT$22.75. Bucking the downturn on the broader market, TSMC closed up 2.01 percent at NT$127.00 after the chip maker raised its sales forecast for the third quarter. "Without TSMC, the weighted index would have fallen about 20 points more today," Huang said. "But TSMC's gains were just a technical rebound, since the upgrade of the sales guidance simply resulted from foreign exchange gains rather than a recovery in global demand." (By Frances Huang)


Updated : 2021-06-14 00:59 GMT+08:00