Tai­wan shares hit by volatil­ity of global mar­kets amid wor­ries over Greek debt

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan trended lower Mon­day as in­vestors took cues from the losses on Wall Street and ma­jor Euro­pean mar­kets such as France and Ger­many, amid lin­ger­ing con­cerns over the debt sit­u­a­tion in Greece, deal­ers said.

A down­ward re­vi­sion of the first-quar­ter gross do­mes­tic prod­uct (GDP) data of the United States, the world’s largest econ­omy, raised wor­ries over the global eco­nomic fun­da­men­tals, while mar­ket sen­ti­ment also turned cau­tious ahead of the re­lease of May sales data by lo­cal listed com­pa­nies, deal­ers said.

While the daily fluc­tu­a­tion limit in the eq­uity mar­ket was raised from 7 per­cent to 10 per­cent with ef­fect from Mon­day, there was no es­ca­la­tion of sell­ing as many in­vestors re­mained on the side­lines, deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change closed down 75.38 points, or 0.77 per­cent, at 9,625.69, af­ter mov­ing be­tween 9,589.09 and 9,692.34. Turnover to­taled NT$91.24 bil­lion (US$2.97 bil­lion) dur­ing the ses­sion.

The mar­ket opened down 0.13 per­cent and fell to the day’s low in a knee-jerk re­ac­tion to the losses on the global mar­kets amid fears that Greece would not be able to reach an agree­ment with its cred­i­tors in time to solve its debt prob­lems, deal­ers said.

Elec­tron­ics Led the Down­turn

The bell­wether elec­tron­ics led the down­turn of the broader mar­ket as in­vestors ap­peared wor­ried about global de­mand af­ter the U.S. re­vised its first-quar­ter GDP growth to mi­nus 0.7 per­cent, deal­ers said.

How­ever, some bar­gain hunt­ing emerged, cap­ping the losses af­ter the in­dex briefly fell be­low 9,600 points, they said.

“The lo­cal bourse re­mained haunted by neg­a­tive leads from over­seas. Judg­ing from the mod­er­ate turnover to­day, in­vestors were not prompted by the big­ger fluc­tu­a­tion lim­its to sell more shares dur­ing the ses­sion,” Marbo Se­cu­ri­ties In­vest­ment Con­sult­ing an­a­lyst Chang Chih-cheng said.

The max­i­mum daily limit was re­vised af­ter 25 years, in an ef­fort by the coun­try’s Fi­nan­cial Su­per­vi­sory Com­mis­sion to bring the lo­cal eq­uity mar­ket more in line with for­eign mar­kets and at­tract greater in­ter­na­tional in­ter­est.

The bell­wether elec­tron­ics sec­tor closed down 1.01 per­cent Mon­day, and the semi­con­duc­tor sub-in­dex also ended 1.01 per­cent lower amid con­cerns over Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co.’s (TSMC, ) sales growth in the third quar­ter of this year. TSMC, the most heav­ily weighted stock on the lo­cal bourse, fell 0.68 per­cent to close at NT$145.00, off an ear­lier high of NT$144.00. TSMC is ex­pected to post a 3 per­cent se­quen­tial sales in­crease for the July-Septem­ber pe­riod due to cus­tomers’ in­ven­tory ad­just­ments, ac­cord­ing to a UBS Se­cu­ri­ties fore­cast, but other for­eign bro­ker­ages have pro­jected an 8 per­cent in­crease.

Led by TSMC, in­te­grated cir­cuit pack­ag­ing and testing ser­vices provider Ad­vanced Semi­con­duc­tor En­gi­neer­ing Inc. (

) dropped 1.59 per­cent to end at NT$43.30, and ri­val Sil­i­con­ware Pre­ci­sion In­dus­tries Co. ( ) shed 3.35 per­cent to close at NT$49.10.

HTC Fin­ishes at NT$98

Smart­phone ven­dor HTC Corp. ( ) fell 4.85 per­cent to fin­ish at NT$98.00 af­ter lo­cal me­dia re­ported that the com­pany’s sup­pli­ers have low­ered their fore­cast for ship­ments of its flag­ship HTC One M9 smart­phone by 30 per­cent to only 3.2 mil­lion units for the en­tire 2015.

Buck­ing the down­turn on the broader mar­ket, smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ) rose 1.02 per­cent to close at NT$3,455.00, giv­ing some sup­port to the in­dex, amid op­ti­mism about or­ders from Ap­ple Inc.

“The lo­cal eq­uity mar­ket is likely to re­main in the dol­drums at least un­til June 10, the dead­line for the high tech com­pa­nies here to re­port their May sales data,” Chang said.

CNA

A man looks at a stock prices board at a stock bro­ker­age in Taipei, yes­ter­day.

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