Taiwan stocks dropped 3.90 percent to close at their lowest level in nearly two months on Thursday, led by index heavyweights such as electronics maker Hon Hai, as domestic tech issues tracked losses on Wall Street. The main TAIEX share index fell 362.64 points to 8,937.58, its lowest level since September 20.
The electronics sub-index tumbled 3.98 percent and the bank and insurance subindex lost 3.87 percent. "This is only the beginning. Everyone now knows that more losses from the US can be rolled out next year, so markets like Taiwan will continue to be volatile," said a sales trader at J.P. Morgan. The US is Taiwan's second-largest export market.
Turnover was active at T$166.12 billion ($5.1 billion), higher than T$155.09 billion in the previous day. "We could possibly see a correction of up to three months, taking the index to the 8,600-8,700 point level if we continue to see declines in the US market, said Alvin Teng, manager at Sinopac Securities. Domestic technology firms such as Hon Hai Precision Industry, which make computers and consumer electronics for major US brands such as Dell and Apple, dropped 5.04 percent.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's top contract chipmaker, lost 1.75 percent, and its smaller rival United Microelectronics Corp (UMC) fell 1.78 percent after their US-listed shares slumped. UMC posted its October sales figure, which rose 12 percent from a year ago, after the market closed.
Telecoms equipment maker Accton Technology defied market weakness and jumped its daily 7 percent maximum after it said it had agreed to a buyout offer by a fund under Taiwan private equity firm FAT Capital Management. Shin Kong, Taiwan's No 8 financial holding firm, slumped the daily 7 percent maximum after local media reported that it booked T$5 billion ($154 million) in losses in the third quarter on asset impairments.
Comments
Comments are closed.