Taipei, Sept. 6 (CNA) Shares in Taiwan moved lower Thursday, closing below the 11,000-point mark, with firms in the Apple Inc. supply chain leading the market drop.
The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, closed down 70.83 points, or 0.64 percent, at 10,924.3, on turnover of NT$127.56 billion (US$4.14 billion).
The market opened up 21.79 points at the day's high of 11,016.92 and hit a low of 10,905.34 before closing below the five-day moving average of 10,993 and the 10-day moving average of 10,986, as selling in the bellwether electronics sector escalated late in the session, with heavyweights in the Apple supply chain, such as smartphone camera lens maker Largan Precision Co., taking a hit.
The electronics index ended down 1.11 percent, underperforming other major sectors in the market. Among the affected stocks, Largan shed 5.10 percent to close at NT$4,640.00, while iPhone assembler Hon Hai Precision Industry Co. lost 1.00 percent to end at NT$79.30.
Contract chipmaker Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock on the local market, dropped 1.10 percent to end at NT$261.00, while integrated circuit designer MediaTek Inc. lost 0.39 percent to end at NT$255.00 and IC packaging and testing service provider Advanced Semiconductor Engineering Inc. fell 1.70 percent to end at NT$72.50.
Among the falling passive component stocks, shares in Yageo Corp. shed 2.6 percent to close at NT$595.00 and Wahsin Technology Corp. lost 3.9 percent to end at NT$256.50.
The financial index closed 0.19 percent lower, with Cathay Financial Holding Co. dropping 0.50 percent to end at NT$51.50, while Fubon Financial Holding Co. finished 0.2 percent lower at NT$50.10 and CTBC Financial Holding Co. fell 0.2 percent to end at NT$21.15.
An analyst with Mega International Investment Services Corp. said that the weak performance was because the tech-heavy Nasdaq Composite Index dropped 96.07 points, or 1.19 percent, to 7,995.17 overnight, dragging down the electronics heavyweights, and due to the worse-than- expected revenue in August posted by Largan.
However, the analyst expressed optimism about the market in the near future, predicting that the Nasdaq has a good chance of rebounding and that the Taiex could find technical support at around 10,900 points.
Meanwhile, Apple's planned launch of new iPhone models later this month could also be good news for the market, according to the analyst.
According to the TWSE, foreign institutional investors sold a net NT$303 million-worth of shares on the main board Thursday.
Source: Focus Taiwan News Channel