Taipei--Shares in Taiwan dropped Tuesday to end below the monthly moving average of 9,863 as a slump in Chinese shares led a slide of Asian stocks following a mixed performance in European and U.S. markets.
The Taiwan Stock Exchange's main index, the TAIEX, opened down 1.01 points at 9,881.53 after failing to break the 10,000-point mark last week and hovering around 9,900 points on shrinking turnover Monday.
The TAIEX closed down 50.12 points, or 0.51 percent, at 9,832.42 Tuesday, after moving between 9,896.59 and 9,820.41. Turnover totaled NT$93.17 billion (US$3.04 billion) during the session.
All the major stock categories lost ground, with Largan Precision Co. (???), which supplies smartphone camera lenses to Apple, falling 2.06 percent to end at NT$95.00. Integrated circuit firm MediaTek Inc. (???) dropped 2.30 percent to end at NT$212.00.
Bucking the trend, however, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the most heavily weighted stock on Taiwan's market, gained 0.53 percent to end at NT$191.00.
Kevin Lin (???), vice president of investment consultant firm Caizischool Co., attributed the fall in the local stock market Tuesday mainly to uncertainty ahead of U.S. corporations' earnings reports later this week and worry over U.S. President Donald Trump's unpredictable policies.
The tense situation in the Middle East and the recent lackluster U.S. and Japanese stock markets also caused the Asian and Taiwan markets to drop, Lin said.
He said the local bourse is expected to move in a small range until May 15, when Taiwan companies trading on the main board and the over-the-counter (OTC) market are due to release their first-quarter financial statements.
Despite the fall Tuesday, the main index remained above 9,800 points and may find some support at the quarterly moving average of 9,665 points, Lin said, forecasting movement of between 9,800 and 10,000 points in the near future.
Source: Focus Taiwan News Channel