Taiwan shares join global plunge, fall 4.83% to 7,410.34
Taiwan could not escape the panic that gripped global stock markets on Monday, as the Taiwan stock exchange’s benchmark index plunged nearly 5 percent on heavy turnover.
The market opened sharply lower and shed nearly 7.5 percent, or 583.5 points, in just under 90 minutes of trading, the biggest plunge in a session in the Taiwan exchange’s history.
The National Stabilization Fund then entered the market and provided some support at just above the 7,200-point level to help the market recover some of its losses and close down 4.83 per- cent, or 376.58 points, at 7,410.34.
The Fund is a mechanism set up by the government to prevent the index from suffering further losses when it comes under pressure from unexpected economic turmoil.
Turnover was NT$ 144.89 billion (US$4.4 billion), and the index fluctuated between a high of 7,719.63 and a low of 7,203.07.
In the bellwether electronics sector, Taiwan Semiconductor Manufacturing Co. ( ), the most heavily weighted stock in the local market, dropped 4.96 percent to close at NT$115, and smartphone camera lens supplier Largan Precision Co. ( to end at NT$2,680.
Integrated circuit designer MediaTek Inc. ( ) and semiconductor inspection tool and equipment supplier Hermes Microvision Inc. ( ) both plunged by the daily maximum fall of 10 percent to close at NT$229 and NT$1,115, respectively.
Financial stocks were less hard hit than other sectors, with the financial sub-index falling 2.96 percent. Fubon Financial Holdings ( ) was one of the few stocks to gain ground on Monday, moving 0.90 percent higher to NT$50.30.
) lost 3.6 percent