Lo­cal shares fall to 8,524.41 amid eco­nomic, high-tech sec­tor woes

The China Post - - TAIWAN BUSINESS -

Shares in Tai­wan took a beat­ing Mon­day as heavy selling pres­sure emerged in re­sponse to the coun­try’s poor eco­nomic data and a more pes­simistic out­look for the hi-tech sec­tor for the sec­ond half of the year, deal­ers said.

The weighted in­dex on the Tai­wan Stock Ex­change closed down 140.93 points, or 1.62 per­cent, at 8,524.41, af­ter mov­ing be­tween 8,482.92 and 8,636.53 on turnover of NT$78.2 bil­lion (US$2.47 bil­lion).

Fi­nan­cial Su­per­vi­sory Com­mis­sion Chair­man Tseng Ming-chung (

) at­trib­uted the fall to Tai­wan’s latest GDP data, which shows that the econ­omy rose only 0.64 per­cent from a year ear­lier in the sec­ond quar­ter, lag­ging be­hind an ear­lier forecast of a 3.05 per­cent in­crease.

The fact that lead­ing high-tech man­u­fac­tur­ers such as Me­di­aTek Inc. ( ) and Her­mes Mi­cro­vi­sion Inc. ( HMI) have low­ered their sales fore­casts for the sec­ond half of this year also shook in­vestor con­fi­dence in the sec­tor, Tseng said.

Me­di­aTek and HMI fin­ished at the max­i­mum daily lower limit at NT$1,420 and NT$299, re­spec­tively. Ad­vance Wire­less Semi­con­duc­tor Co. ( ) and Win Semi­con­duc­tors Co. ( ) also ended lim­it­down at NT$78.3 and NT$30.45, re­spec­tively.

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( ), the most heav­ily weighted stock on the lo­cal mar­ket, lost 3.58 per­cent to close at NT$134.5. Hon Hai Pre­ci­sion In­dus­try Co. ( ) dropped 1.65 per­cent to fin­ish at NT$89.2 and Catcher Tech­nol­ogy Co. ( ) was down 3.45 per­cent at NT$336.

Lar­gan Pre­ci­sion Co. ( ), the most ex­pen­sive stock on the lo­cal bourse, closed down 8.74 per­cent at NT$2,925.

While the down­turn of Lar­gan’s shares fur­ther up­set the con­fi­dence of in­di­vid­ual in­vestors, the pur­chas­ing man­agers in­dex (PMI) in July, which in­di­cated an eco­nomic con­trac­tion for the first time since Fe­bru­ary, fu­eled skep­ti­cism about whether Tai­wan can achieve 3 per­cent eco­nomic growth this year, deal­ers said.

Ac­cord­ing to a re­port re­leased Mon­day by the Chung-Hua In­sti­tu­tion for Eco­nomic Re­search (CIER), the lo­cal PMI in­dex for July dropped 2.2 points from a month ear­lier to 48.6, the low­est level recorded since it hit 47.8 in Fe­bru­ary.

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