Taiwan shares drop to a 21-month low of 8213.42
Taiwan shares closed down 92.22 points at 8,213.42 on Monday, a record low in 21 months, after news of a much lower GDP growth forecast broke last Friday.
The market closed down 1.11 percent on a turnover of NT$68.68 billion (US$2.12 billion), which was also the second lowest this year so far.
Nearly all major stock categories tumbled yesterday. Food concept, plastic and chemical concept stocks both dipped 0.5 percent. Machinery and electronics, paper, construction, and finance concept stocks fell 1.4 percent, 1.1 percent, 1.2 percent and 1 percent, respectively.
Cement concept stocks managed to stay level, while textile stocks edged up 0.1 percent. Largan Precision Co. ( ), the highest priced stock on the market, rose 2.06 percent to close at NT$2,970. The second expensive Hermes Microvision Inc. ( ) dropped 7.1 percent to end at NT$1,240.
Huang Kuo- wei ( ) , an associate manager at Mega International Investment Services Corp. ( ) , said the lowerthan- expected GDP forecast of 1.56 percent publicized last Friday had a great impact on yesterday’s stock performance. But Huang predicts the news’ adverse impact will peter out in the days ahead.
Huang said there is a good chance the market will rebound and climb to 8,306 points in the near future.
Some businesses are more pesSIMistic, believing that the sluggish economy will last until the first half of 2016.
Institutional Investors Registered
NT$4.16 billion Net Sell
Three primarily professional institutional investors in Taiwan together logged a NT$4.16 billion net sell. More specifically, foreign investors had a net sell of NT$2.11 billion, security dealers NT$ 2.28 billion, while investment trust registered a net buy of NT$227 million.
Among major electronics stocks, Taiwan Semiconductor Manufacturing Co. ( ) was down 1.5 percent to finish at NT$124; MediaTek Inc. (
) closed 1.8 percent lower at NT$265.
Others like Advanced Semiconductor Engineering Inc. (
) ended 4.1 percent lower at NT$32.2; Inotera Memories, Inc. ( ) plunged 5.7 percent lower at NT$18.7; Nanya Technology Corp. ( ) slumped 8.7 percent at NT$37.65; and Hon Hai Precision Industry Co. ( ) dipped 0.5 percent at NT$88.2.
Among financial stocks, Cathay Financial Holding Co. ( ) dropped 0.8 percent to close at NT$46.6; Fubon Financial Holding Co. ( ) declined 0.5 percent to finish at NT$53.2; CTBC Financial Holding Co. ( ) lost 1.7 percent to end at NT$19.5; Mega Financial Holding Co. (
) closed 0.2 percent lower at NT$24; and Yuanta Financial Holdings ( ) decreased 3.8 percent at NT$13.8.
Investors look at a screen showing stock performance in Taipei, yesterday. The weighted index on the Taiwan Stock Exchange closed down 92.22 points, or 1.11 percent, at 8,213.42, on turnover of NT$68.68 billion (US$2.13 billion).