Taiwan stocks shed 4.3 percent on Friday, marking its biggest daily percentage fall in nearly 13 months, as investors dumped tech stocks such as UMC after Wall Street losses on rising debt problems in Europe. The main TAIEX share index dropped 324.21 points to end at 7,217.83, the largest daily drop since January 15, 2009 and its weakest finish since September 4, 2009.
Turnover increased to T$121.7 billion ($3.79 billion) from Thursday's T$75.5 billion. The heavily weighted electronics sub-index dropped 4.34 percent, and the financial sector slid 5.53 percent. "The TAIEX fell more sharply than I had anticipated," said Katty Wang, a fund manager with Prudential Financial Securities Investment Trust.
"It seems investors' confidence in the stock market is weak as they worry about debt problems in Europe. They never thought the situation in Spain and Portugal was that serious." United Microelectronics Corp (UMC), the world's No 2 contract chipmaker, lost 4.85 percent, dragging the semiconductor sub-index down 3.79 percent.
The TAIEX will likely trade between 7,000 and 7,398 points before the market closes for the week-long Lunar New Year holiday starting February 11, said Tu Jin-lung, chairman with Grand Cathay Investment Services. The Taiwan stock market will open Saturday to make up for the Lunar new year holiday on February 19.
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