Taiwan shares tumble as Apple concept stocks move lower

Taipei, Shares in Taiwan took a dive Thursday, falling more than 100 points to below the 10,600-point mark by the close, as major Taiwanese suppliers to Apple Inc. posted losses.

The Taiwan Stock Exchange's main index, the Taiex, opened down 39.83 points at 10,578.98, trading below the 12-month moving average of 10,599 and then the five-day moving average of 10,566, as select electronics heavyweights suffered a pullback and the financial sector lost steam after gains in recent sessions.

The Taiex closed down 104.63 points, or 0.99 percent, at 10,514.18, after moving between 10,509.03 and 10,578.98, on turnover of NT$123.05 billion (US$4.14 billion).

All the major stock categories lost ground, with cement stocks posting the largest drop of 2.81 percent, followed by foodstuff shares at 1.81 percent.

Among the losing large-cap electronics stocks, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, lost 1.10 percent to end at NT$220.50, while Hon Hai Precision Industry Co., an assembler of iPhones and iPads for Apple, closed 2 percent lower at NT$80.10.

Largan Precision Co., a smartphone camera lens supplier to Apple, finished 0.40 percent lower at NT$3,685.00.

In the financial sector, Cathay Financial Holdings closed 1.10 percent down at NT$52.90, while Fubon Financial Holdings lost 1.70 percent to end at NT$50.40 and CTBC Financial Holding Co. fell 0.20 percent to close at NT$21.10.

Losers outnumbered gainers 551 to 247, with 120 stocks remaining unchanged.

Foreign institutional investors sold a net NT$10.80 billion-worth of shares on the main board, according to the TWSE.

A Mega International Investment Services Corp. analyst said it would be difficult for the weighted index to move higher than the 12-month moving average, as foreign investors continued to remit funds out of the region as the U.S. dollar maintained its rise against the Taiwan dollar.

The analyst said that the falling local market Thursday could be attributed to weakness in the financial and old-economy sectors, and losses in electronics stocks following Apple's recently reported weaker-than-expected financial results for its hardware products in the fiscal 2018 second quarter that ended March 31.

Looking to the future, the Taiex could continue to fall, according to the analyst.

Source: Focus Taiwan News Channel