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