Taiwan shares fall back below 10,000 points

Taipei, -Shares in Taiwan closed down by nearly a percent Tuesday to fall back below 10,000 points, dragged down by large cap shares after stocks in the United States took a beating overnight.

The Taiwan Stock Exchange's benchmark index, the Taiex, closed down 81.74 points, or 0.82 percent, at 9,931.59 after moving between 9,893.96 and 9,952.34. Turnover totaled NT$88 billion (US$2.86 billion).

All major stock categories lost ground except for the cement and financial sectors, which posted small gains.

The market opened down 68.62 points at 9,944.71 and plunged below 9,900 points several times starting at around 11 a.m.

But buying emerged in the last 20 minutes of the session as bargain hunters picked up select large cap stocks, such as Largan Precision Co., Mega Financial Holding Co., Cathay Financial Holding Co. and Fubon Financial Holding Co., helping the Taiex close comfortably above 9,900.

In the bellwether electronics sector, Largan Precision Co., a supplier of smartphone camera lenses to Apple, rose 1.61 percent to end at NT$3,780.00, while iPhone assembler Hon Hai Precision Industry Co. dropped 1.27 percent to close at NT$69.90.

Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, shed 2.84 percent to end at NT$222.50 after the company confirmed that its wafer yields at its Fab 14B in Tainan were affected by substandard chemicals.

Hua Nan Securities Investment Management Chairman David Chu (???) said the market saw a technical downside correction Tuesday after recent gains.

Taiwan shares closed above the 10,000-point mark on Monday for the first time since Dec. 5, 2018.

Quarterly earnings from U.S. companies will be a key factor affecting the performance of U.S. stocks, Chu said, adding that Apple Inc.'s weak iPhone sales could hurt the results in its earnings report on Wednesday.

Although there are signs that trade tensions between China and the United States may be easing, market uncertainties remain in the near future, Chu said.

The problem at TSMC's Fab 14B production site could also affect the showing of technology stocks in Taiwan's market, but the market's fundamentals remain solid given that the Taiex is still above 9,900 points, he said.

According to TWSE data, foreign institutional investors sold a net NT$1.71 billion in shares Tuesday.

Source: Focus Taiwan News Channel