Alexa
  • Directory of Taiwan

Taiwan shares tumble, end below 8,600 points

Taiwan shares tumble, end below 8,600 points

Taipei, Nov. 10 (CNA) Shares in Taiwan fell Tuesday, closing below the 8,600 point mark, in the wake of a drop on the stock markets in Europe and the United States and the release of lackluster export data for Taiwan. Taiwan's exports fell 11 percent to US$23.94 billion in October, dropping for the ninth straight month and registering the fifth consecutive monthly double-digit decline, according to statistics released Monday by the Ministry of Finance. After the local bourse opened Tuesday, old economy, electronics and financial stocks fell on news that the Down Jones Industrial Average had dropped 179.85 points Monday. Taiwan shares closed down 105.58 points, or 1.22 percent, at 8,536.9 points Tuesday. Turnover totaled NT$86.01 billion (US$2.63 billion) during the session. Bellwether stocks encountered heavy selling and investors grew cautious due to the drop in the European and U.S. stock markets and the expectation of a rate increase by the U.S. Federal Reserve. Heavily weighted stocks such as Taiwan Semiconductor Manufacturing Co. (TSMC, ???), Largan Precision Co. (???), and Hon Hai Precision Industry Co. (??) dropped more than 1 percent, while Fubon Financial Holding Co. (???) and Cathay Financial Holding Co. (???), fell more than 2 percent. Beven Yeh (??? ), manager of Prudential Financial High Growth Fund, said there is a 70 percent possibility that the U.S. will raise its interest rates in December. The possibility of a rate hike, the capital outflow from emerging markets, Taiwan's lackluster economic fundamentals, and uncertainty over the country's Jan. 16 presidential election, all contributed to the local bourse's slump, he said. Yeh said Taiwan shares are likely to hover around 8,322 in the near future. He suggested that investors target stocks in the IC foundry, financial, solar power, and plastic and chemical sectors. (By Lo Hsiu-wen and Lilian Wu)


Updated : 2021-09-25 22:42 GMT+08:00