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Taiwan shares extend losses as large-cap stocks weaken

Taiwan shares extend losses as large-cap stocks weaken

Taipei, Oct. 14 (CNA) Shares in Taiwan extended their losses Wednesday from a session earlier as large-cap stocks across the board continued to fall amid cautious sentiment during the current earnings season at home and in the United States, dealers said. Taiwan's high-tech sector came under pressure after U.S.-based chip giant Intel Corp. reported a drop in third quarter net profit due to continued weakness in the global PC market, and old economy and financial shares were unable to pick up the slack, they said. Bucking the downturn of the broader market, solar energy stocks generally moved up after several major players in the field expressed optimism toward global demand and gave an upbeat outlook for 2016, dealers said. The weighted index on the Taiwan Stock Exchange ended down 45.41 points, or 0.53 percent, at 8,522.51, after moving between 8,515.53 and 8,553,87, on turnover of NT$80.46 billion (US$2.47 billion). The market opened down 0.35 percent in a knee-jerk reaction to a lackluster Wall Street overnight, and it remained below the closing level of the previous day for the rest of the session because of weakness in the market's heavyweights. "Many investors remained wary of the third quarter results," Mega International Investment Service Corp. analyst Alex Huang said. "They appeared reluctant to buy for the moment, and that's why the entire market remained in consolidation mode." Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, and Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., are scheduled to report their earnings Thursday. The third quarter bottom lines and fourth quarter guidance of the two companies will be closely watched in the local market. TSMC, the most heavily weighted stock in the local market, fell 0.73 percent to close at NT$136.50, and Largan, the most expensive stock in Taiwan, shed 3.04 percent to end at NT$2,550.00. "Intel's third quarter results also dampened sentiment toward the electronics sector here. Without a strong high-tech sector, the broader market suffered," Huang said. Overnight, Intel reported third-quarter net profit of US$3.11 billion, or US$0.64 a share, down from US$3.32 billion, or US$0.66 per share recorded a year earlier. The fall largely reflected a disappointing global PC market. Among non-high tech stocks in Taiwan, food maker Uni-President Enterprises Corp. (??) fell 1.39 percent to close at NT$56.70, and Formosa Plastics Corp. (??) lost 2.20 percent to end at NT$75.50. Mega Financial Holding Co. (???) shed 1.74 percent to close at NT$22.50, while Fubon Financial Holding Co. (???) ended unchanged at NT$52.30. "Some investors moved their funds to smaller cap stocks with positive leads today. Solar energy stocks were where investors placed their money after the sector built a rosy picture for demand," Huang said. In the sector, Giga Solar Materials Corp. (??) rose 5.65 percent to close at NT$580.00, and Sino-American Silicon Products Inc. (???) gained 3.11 percent to end at NT$38.15. (By Frances Huang)


Updated : 2021-09-26 03:43 GMT+08:00