Shares plunge as high-tech com­pa­nies suf­fer heavy losses amid global mar­ket con­cerns

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan took a beat­ing Wed­nes­day as the bell­wether elec­tron­ics sec­tor en­coun­tered heavy down­ward pres­sure amid con­cerns over the mar­ket out­look of the global semi­con­duc­tor busi­ness, deal­ers said.

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ), the world’s largest con­tract chip maker, was the fo­cus of the sell-off as in­vestors ap­peared anx­ious ahead of an in­vestor con­fer­ence sched­uled by the wafer foundry op­er­a­tor for Thurs­day, they said.

Sell­ing also spread to the old econ­omy and fi­nan­cial sec­tor, in the late trad­ing ses­sion in par­tic­u­lar, fur­ther push­ing down the broader mar­ket at the end of the ses­sion, they said.

The weighted in­dex on the Tai­wan Stock Ex­change ended down 102.16 points, or 1.05 per­cent, at 9,540.06, af­ter mov­ing be­tween 9,508.14 and 9,654.15, on turnover of NT$113.15 bil­lion (US$2.62 bil­lion).

The mar­ket opened down 0.11 per­cent on fol­low-through sell­ing from a ses­sion ear­lier, but staged a mild tech­ni­cal re­bound in the early morn­ing ses­sion, deal­ers said.

With the in­dex mov­ing closer to the 9,700 point mark, how­ever, sell­ing set in to drag down the broader mar­ket into neg­a­tive ter­ri­tory again, and the weak­ness con­tin­ued un­til the end of the ses­sion with semi­con­duc­tor chips weigh­ing most heav­ily on in­vestors’ minds, they said.

In­vestors Cut Hold­ings in

Semi­con­duc­tor Shares

“Many in­vestors re­mained wary of the prospects of the global semi­con­duc­tor busi­ness at a time when a stronger U. S. dollar has boosted in­ven­tory lev­els of many U. S. high- tech ven­dors,” Mega In­ter­na­tional In- vest­ment Ser­vices Corp. an­a­lyst Alex Huang said.

“In par­tic­u­lar be­fore TSMC, the most closely watched chip maker in the lo­cal mar­ket, gives its guid­ance about the sec­ond quar­ter, cau­tious i nvestors tended to cut their hold­ings for the mo­ment in a bid to pre­vent pos­si­ble losses re­sult­ing from the in­vestor con­fer­ence,” Huang said.

Huang said that the sell­ing in the lo­cal semi­con­duc­tor sec­tor also fol­lowed a 0.95 per­cent fall of the Philadel­phia Semi­con­duc­tor In­dex on Wall Street overnight.

The lo­cal semi­con­duc­tor subindex ended down 1.49 per­cent and the elec­tron­ics sub- in­dex closed down 1.36 per­cent.

TSMC fell 0.69 per­cent to close at NT$ 143.00, off an early low of NT$ 141.50.

“I sus­pected sell­ing in TSMC shares came from for­eign in­sti­tu­tional in­vestors but gov­ern­ment- led funds picked up bar­gains af­ter the for­eign in­sti­tu­tional sell­ing to help the stock re­coup part of its ear­lier losses,” Huang said.

Ac­cord­ing to the TWSE, for­eign in­sti­tu­tional in­vestors sold a net NT$ 21.62 bil­lion worth of lo­cal shares on the main board.

Among other fall­ing in­te­grated cir­cuit stocks, con­tract chip maker United Mi­cro­elec­tron­ics Corp. ( ) lost 3.64 per­cent to close at NT$ 14.55, and IC designer Me­di­aTek Inc. (

) shed 3.98 per­cent to end at NT$ 398.50.

Buck­ing the down­turn in the broader mar­ket, smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ) rose 2.62 per­cent to close at NT$ 2,745.00 af­ter sev­eral for­eign in­sti­tu­tional in­vestors up­graded their tar­get prices on the stock. Lar­gan is also sched­uled to hold an inves-

tor con­fer­ence Thurs­day.

Other Sec­tors

Asia Ce­ment Corp, ( ) lost 1.28 per­cent to end at NT$38.50, food maker Uni-Pres­i­dent En­ter­prises Corp. ( ) fell 1.36 per­cent to close at NT$50.80, and prop­erty de­vel­oper Huaku Devel­op­ment Co. ( ) shed 1.62 per­cent to end at NT$67.00.

“Af­ter to­day’s sell-off, the lo­cal bourse has be­come tech­ni­cally weaker.

The 9,500-point mark will be crit­i­cal for the eq­uity mar­ket and if the in­dex falls be­low that level, fur­ther sell­ing will fol­low,” Huang said.

CNA

Show­girls hold up smartphones dis­play­ing the new ap­pli­ca­tion “WeJoy” at the app’s launch­ing press con­fer­ence in Taipei, yes­ter­day. WeJoy is an ap­pli­ca­tion that of­fers on­line dat­ing ser­vices, and will be hold­ing a beauty con­test choos­ing “WeJoy Girls” to rep­re­sent the ap­pli­ca­tion in in­ter­act­ing with cus­tomers.

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