Taiwan shares plunge 1.65%, ending below 10,000 points

2018/12/05 17:16:05 fontsize-small fontsize-default fontsize-big
CNA file photo

CNA file photo

Taipei, Dec. 5 (CNA) Shares in Taiwan tumbled 1.65 percent to below 10,000 points Wednesday after an overnight plunge on Wall Street as investors were worried about a potential economic slowdown and uncertainty surrounding a temporary truce between the United States and China in their trade conflict.

The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, dropped 166.80 points, or 1.65 percent, to 9,916.74 Wednesday on turnover of NT$113.71 billion (US$3.69 billion) after remaining above 10,000 points over the previous two sessions.

The Taiex closed up about 250 points to breach the 10,000 point mark Monday and remained above 10,000 points at 10,083.54 Tuesday, despite shedding 0.54 percent during the session.

After falls on Wall Street overnight, with the Dow Jones Industrial Average shedding nearly 800 points, the Taiwan market opened down 111.56 points at the day's high of 9,971.98 before selling emerged, sending the Taiex down to a low of 9,895.29 at one point before the close.

In the United States, shares of Apple Inc. fell 4.4 percent to end at US$176.69, which put shares of Hon Hai Precision Industry Co., a major iPhone assembler, under heavy pressure during the morning session.

Hon Hai closed down 2.45 percent to end at NT$71.60, with its market value falling to NT$992.59 billion.

Selling in Hon Hai also spread to other select large-cap high-tech stocks, which accelerated the fall on the broader market, with Taiwan Semiconductor Manufacturing Co. (TSMC), which provides processors for iPhone production and is the most heavily weighted stock in Taiwan, falling 3.42 percent to NT$226.00.

Largan Precision Co., a major supplier of smartphone camera lenses to Apple, dropped 3.71 percent to end at NT$3,370.00.

Shares in the biotech, automobile, networking communication and tourism sectors were relatively resilient.

Carnival Industrial Corp., an affiliate of Yulon Group, Taiwan's largest automobile production conglomerate, posted a rise for second consecutive session Tuesday after Yen Chen Li-lien's (嚴陳莉蓮) takeover as the group's chief executive officer following the death Monday of her husband Kenneth Yen (嚴凱泰), the group's chairman and CEO.

Carnival rose 9.96 percent to end at NT$5.63 Wednesday, a record high since July.

Market analysts said that the movement of foreign institutional investors is expected to be affected by international stock markets, while the lackluster performance in the U.S. equity markets could dent foreign institutional investors' confidence in the Taiwan market.

The market will find technical support at the 10-day moving average of 9,871 and the Taiex could hover between 9,500 and 11,500 next year, with 10,500 forecast for the first quarter, the analysts said.

According to the TWSE, foreign institutional investors sold a net NT$9.19 billion-worth of shares on the main board Wednesday.

(By Tien Yu-pin and Evelyn Kao)
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