Shares close below 9,600 points on TWSE
Shares in Taiwan continued their downturn to close below the 9,600- point mark as the bellwether electronics sector remained weak amid lingering concerns over sluggish sales this quarter, dealers said.
Selling also spread to the old economy sector as investors locked in gains made by industrial stocks a session earlier, including companies in the food and petrochemical sectors, they said.
The weighted index on the Taiwan Stock Exchange ended down 57.74 points, or 0.6 percent, at 9,556.52, after moving between 9,550.44 and 9,645.48, on turnover of NT$100.93 billion (US$3.28 billion).
The market opened up 7.06 points and soon rose to the day’s high on a mild technical rebound, but selling pressure targeting the high- tech sector quickly set in amid fears that the sector will report disappointing sales data for May, dealers said.
“The local stock market has been in the doldrums the past few sessions, and market sentiment has turned more cautious, with many investors even growing impatient,” Marbo Securities Investment Consulting analyst Chang Chih-chen said.
“Investors preferred to cut their holdings for the time being to steer clear of any possible negative leads emerging from high-tech firms’ May sales reports,” Chang said.
Listed companies are required to report their May sales by June10.
Falling Large-cap Electronics Stocks
Among the falling large-cap electronics stocks, Taiwan Semiconductor Manufacturing Co. (TSMC, ), the most heavily weighted stock in the local market, fell 0.69 percent to close at NT$143.00.
Precision Industry Co. ( ) , the world’s largest contract electronics maker, lost 0.82 percent to end at NT$ 97.00.
Smartphone vendor HTC Corp. ( ) fell 5.79 percent to close at NT$92.80, the lowest level since the stock was publicly listed in March 2002, because investors lacked confidence in the company’s outlook.
“I would guess that the selling in the electronics sector largely came from foreign investors,” Chang said.
According to the TWSE, foreign institutional investors sold a net NT$ 3.06 billion in local shares on the main board Wednesday.
Bucking the downturn were select Taiwanese suppliers to Apple Inc., such as smartphone camera lens maker Largan Precision Co. ( ) and metal casing producer Catcher Technology Co. ( ), which trended higher on hopes that the next generation iPhone will boost shipments, dealers said.
Largan rose 0.44 percent to close at NT$3,455.00 to remain the most expensive stock in Taiwan, and Catcher gained 1.42 percent to end at NT$356.00.
Old Economy Stocks
Among the declining old economy stocks, Formosa Plastics Corp. ( ) fell 1.06 percent to close at NT$74.90, and food maker Uni-President Enterprises Corp. ( ) lost 1.28 percent to end at NT$54.10.
In the financial sector, which has been a pillar of strength in recent weeks, Fubon Financial Holding Co. ( ) closed down 0.95 percent at NT$62.50, and the sector as a whole was down 0.18 percent.
“More losses are possible in Taiwan’s stock market as many investors are wary of future fluctuations. I think that the nearest technical support will probably be seen at around 9,500 points,” Chang said.