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Taiwan shares end below 8,300 points

Taiwan shares end below 8,300 points

Shares in Taiwan trended lower Tuesday, closing below the 8,300 point mark, led by large-cap stocks across the board, as investors took cues from the losses on Wall Street overnight, dealers said.

Turnover remained thin, keeping local share prices in consolidation mode, as many foreign institutional investors have been away from the trading floor during the Christmas season, dealers said.

The weighted index on the Taiwan Stock Exchange closed down 64.58 points, or 0.77 percent, at 8,293.91, after moving between 8,286.84 and 8,351.16, on turnover of NT$52.48 billion (US$1.6 billion).

The market opened down 9.22 points following a downturn on Wall Street overnight due to a drop of more than 3 percent drop in international crude oil prices. Selling on the local main board continued throughout the session, focusing on market heavyweights and keeping the index below the previous closing level, dealers said.

"It was another quiet day on the local equity market in the absence of foreign institutional investors," Ta Ching Securities analyst Andy Hsu said. "Until they return to the trading floor after the New Year holiday, more boring sessions can be expected."

Hsu said while many foreign institutional investors have been away for the holidays, others have been cutting their holdings in local shares, in particular large-cap electronics stocks.

According to the TWSE, foreign institutional investors sold a net NT$989 million worth of shares on the local main board Tuesday.

Among the falling high-tech stocks, Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock on the local market, fell 1.0 percent to close at NT$142.00; Hon Hai Precision Industry Co., which assembles iPhones and iPads, dropped 0.4 percent to end at NT$80.70.; and Pegatron Corp., which assembles the iPhone 6s, shed 4.1 percent to close at NT$75.20.

"Selling in these stocks reflected worry over iPhone sales at a time when global smartphone demand is slowing down," Hsu said. Daiwa Securities has cut its estimate of iPhone shipments for the first quarter of next year from 52 million to 46 million units, in light of the estimated 76 million units for the current quarter.

Bucking the downtrend on the stock market, smartphone vendor HTC Corp. rose 0.6 percent to close at NT$79.50 on hopes that its sales will increase with the wide release next April of its first virtual reality headset, the HTC Vive.

In the old economy sector, food maker Uni-President Enterprises Corp. shed 2.5 percent to close at NT$54.20, and Formosa Plastics Corp. fell 1.5 percent to end at NT$72.90.

Among the financial stocks, E. Sun Financial Holding Co. dropped 0.8 percent to close at NT$19.15, while CTBC Financial Holding Co. gained 0.3 percent to end at NT$16.85.

"As long as the index holds above 8,200 points, the market will maintain its current consolidation mode but is likely to weaken technically if the index falls below that level," Hsu said.


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Updated : 2021-08-02 01:13 GMT+08:00