Taiwan stocks ended Wednesday down 2.56 percent in their worst daily percentage fall in three months, as a Wall Street slide raised concerns about the health of the island's main export destination. The main TAIEX plunged 203.66 points to 7,736.98. All sectors lost ground, with drops of more than 3 percent in the banking and shipping sub-indexes.
The electronics sub-index also shed 2 percent. "Investors are worried that a double dip could happen in the second half of this year," said Yu Rayming, chief investment officer of Prudential Financial Securities Investment Trust. The main index was under pressure and could slide to around 7,650 points this week, he said.
The United States and China are Taiwan's main export markets. Compal, the world's No 2 contract laptop maker, sank 3.2 percent. China Steel, the island's top steel maker, fell 1.8 percent. Shortly after the market close, the firm was expected to announce cuts in its October-November prices. Foreign investors posted their biggest net sales in two weeks on Tuesday, expanding their total net sales to T$5.1 billion ($160 million) so far in August.
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