Taipei: Shares in Taiwan experienced a significant decline, falling over 2 percent on Tuesday as investors redirected funds away from the electronics sector amid concerns over stock valuations and renewed geopolitical tensions. This downturn follows reports of an oil tanker being struck near the Strait of Hormuz, dealers reported.According to Focus Taiwan, the Taiex, the Taiwan Stock Exchange's benchmark index, ended the day down 1,077.28 points, or 2.31 percent, at 45,479.11. The index fluctuated between 45,432.02 and 46,967.04 throughout the trading session, with a total turnover of NT$1.17 trillion (US$36.46 billion). Concord Securities analyst Kerry Huang noted that investors were cautious due to recent strong performances, which led to concentrated sell-offs in the tech sector, previously a driver of the Taiex's rise.The market was further pressured by international reports of Iran firing missiles at commercial vessels in the Strait of Hormuz ahead of a NATO summit. Despite a 1.12 percent rise on the tech-heavy Nasdaq index overnight, Taiwan's local electronics index lost 2.59 percent.Specific companies in the tech sector saw significant declines, with IC packaging and testing firm ASE Technology Holding Co. falling 4.12 percent to NT$651.00, and IC assembly equipment supplier Scientech Corp. sliding 6.05 percent to NT$808.00. United Microelectronics Corp., Taiwan's second-largest contract chipmaker, shed 6.63 percent to close at NT$155.00. Other notable declines included Hon Hai Precision Industry Co., which fell 2.07 percent to NT$237.00, and Delta Electronics Inc., which decreased by 5.26 percent to NT$1,890.00.However, Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market value, showed resilience, ending down only 0.81 percent at NT$2,440.00. Investors remained optimistic about TSMC's upcoming investor conference on July 16, anticipating positive news related to its role in the AI era.The financial sector experienced a modest uptick, with Cathay Financia l Holding Co. rising 3.85 percent to NT$97.00, Yuanta Financial Holding Co. adding 2.05 percent to NT$69.80, and Fubon Financial Holding Co. closing up 1.23 percent at NT$123.00. Despite this, the small trading volume in financial stocks did not significantly influence the Taiex.Old economy stocks faced challenges, as Nan Ya Plastics Corp. fell 10 percent, the maximum daily decline, to NT$166.50, and Formosa Plastics Corp. dropped 5.13 percent to NT$57.30. In contrast, Uni-President Enterprises Corp. saw a slight increase, ending up 0.26 percent at NT$78.00.Huang cautioned that the Taiex's dip below the 20-day moving average of 45,710 could lead to more losses. The Taiwan Stock Exchange reported that foreign institutional investors sold a net NT$54.73 billion of shares on the main board Tuesday.