Taipei: Shares in Taiwan closed lower Tuesday after losses in the United States overnight, with the downturn limited by government-led funds picking up large cap stocks to minimize volatility, dealers said. The Taiex, the Taiwan Stock Exchange’s benchmark index, ended down 103.76 points, or 0.36 percent, at 28,707.13 after moving between 28,553.64 and 28,833.03. Turnover totaled NT$458.85 billion (US$14.63 billion).
According to Focus Taiwan, the market opened down 0.30 percent and selling escalated, pushing the Taiex down by over 250 points in the early morning session on U.S. weakness overnight. However, bargain hunting followed, helping the broader market return to positive territory at one point, before downward pressure resumed, particularly in the late trading session, pushing the index back into negative territory.
Moore Securities Investment Consulting Co.’s Adam Lin stated, “Large cap tech and financial stocks recovered from earlier losses to cap the downturn on the broader market today.” Lin added that government-led funds likely engaged in the bargain hunting as the government aimed to bolster investors’ confidence amid China’s large-scale military drill around Taiwan.
Among market heavyweights to receive government support, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted local stock, lost 0.65 percent to close at NT$1,520.00, off a low of NT$1,510.00. Smartphone IC designer MediaTek Inc. ended unchanged at NT$1,420.00 after hitting NT$1,400.00, while power management solution provider Delta Electronics Inc. slid 0.10 percent to close at NT$961.00, off a low of NT$957.00.
Memory chip producers continued to outperform the broader market on product price hikes with Winbond Electronics Inc. surging 8.84 percent to end at NT$83.70 and Nanya Technology Corp. rising 3.18 percent to close at NT$194.50.
In the financial sector, Cathay Financial Holding Co. rose 0.26 percent to end at NT$76.20, E. Sun Financial Holding Co. added 0.59 percent to close at NT$33.85, and First Financial Holding Co. ended up 0.85 percent at NT$29.75.
The old economy sector appeared mixed throughout the session. Shares in food brand Uni-President Enterprises Corp. lost 2.26 percent to close at NT$77.80 and Wei Chuan Foods Corp. ended down 0.34 percent at NT$14.60, while Asia Cement Corp. gained 0.82 percent to close at NT$37.10, and rival TCC Group Holdings Co. ended up 1.29 percent at NT$23.60.
According to the TWSE, foreign institutional investors bought a net NT$4.47 billion worth of shares on the main board Tuesday.
