Taiwan shares ended down 0.49 percent on Tuesday, pulling back from a six-year closing high, amid concerns a strong rally in property-related shares in the past month could not justify their earnings growth.
The main TAIEX share index closed at 7,609.90 points after hitting a six-year high on Monday. The construction sub-index dropped 3.46 percent. But market heavyweight TSMC reached its highest close in seven months and led some tech firms higher, as investors cheered huge inflows by foreign funds that have highlighted Taiwan as a popular market for foreign investors in the past week.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's top contract chip maker, rose 0.9 percent to finish at its highest level since May 8. TSMC topped the list of foreign net buying on Monday, according to the Taiwan Stock Exchange. Shares worth T$136.7 billion (US $4.2 billion) changed hands, rising from T$127.1 billion in the previous session.
In the last seven sessions, foreign investors posted a net purchase of US $1.68 billion of Taiwan shares, compared with a combined US $1.62 billion for Asia's six major countries, including Taiwan, India and Korea, according to data compiled by Nomura Securities.
Mediatek Inc, Taiwan's No 1 IC design house, rose 2.81 percent and was the most actively traded issue by value. Property or land owners declined. The construction sub-index has jumped 24 percent since early November, outperforming an 8.4 percent gain in the benchmark index.
Formosa Rubber slumped 4.27 percent, Nan Kang Tire fell 2.43 percent, and China Petrochemical dropped 4.46 percent. Powerchip, Taiwan's top memory chip maker, ended 0.2 percent higher. Powerchip posted a 4.6 percent gain in November sales from October.
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