Tai­wan shares join global plunge, fall 4.83% to 7,410.34

The China Post - - TAIWAN BUSINESS -

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

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