Taipei: Shares in Taiwan ended lower on Monday as escalating conflict in the Middle East affected market sentiment following attacks by the United States and Israel on Iran, resulting in the death of Iran's supreme leader Ayatollah Ali Khamenei, dealers reported. The Taiex, which is the Taiwan Stock Exchange's (TWSE) benchmark index, closed down 319.40 points, or 0.90 percent, at 35,095.09, with turnover amounting to NT$966.85 billion (US$30.76 billion).
According to Focus Taiwan, the geopolitical tensions have caused a spike in crude oil prices, leading investors both domestically and internationally to reduce their stock holdings out of concern for economic repercussions. Concord Securities analyst Kerry Huang noted that the news prompted investors in Taiwan to secure their recent gains, particularly targeting tech stocks for sell-offs, though many shares managed to recoup some early losses.
Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the market, saw its shares fall by 1.00 percent, closing at NT$1,975.00, which influenced a 0.87 percent decrease in the electronics index to 2,175.24. ASE Technology Holding Co. experienced a 4.39 percent decline, while Nanya Technology Corp. maintained stability, falling just 0.18 percent.
In the tech industry, Hon Hai Precision Industry Co. dropped 1.65 percent, but Quanta Computer Inc. rose by 3.26 percent due to its lower valuation. In contrast, Formosa Petrochemical Corp. gained 3.67 percent as it benefited from higher oil prices, while Nan Ya Plastics Corp. and Formosa Plastics Corp. saw declines.
Among other sectors, Eclat Textile Co. decreased by 2.01 percent, whereas Makalot Industrial Co. edged up slightly. The financial sector was not spared, with Cathay Financial Holding Co. and Fubon Financial Holding Co. both experiencing losses.
Huang stated that while the Taiex managed to recover some losses, the ongoing geopolitical tensions make it difficult to predict future movements of the index, emphasizing that the market thrives on certainty. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$38.99 billion in shares on Monday.