Taipei: Shares in Taiwan ended sharply down by more than 250 points as the Taiwan dollar continued its rapid appreciation against the U.S. dollar, focusing market attention on export-oriented tech stocks due to concerns over substantial foreign exchange losses.

According to Focus Taiwan, the Taiex, Taiwan Stock Exchange's weighted index, closed down 254.65 points, or 1.23 percent, at 20,532.99, with turnover totaling NT$387.02 billion (US$12.92 billion). The market observed a notable decline in electronics stocks, which fell by 1.44 percent, and the semiconductor sub-index, which dropped 1.30 percent.

Moore Securities Investment Consulting analyst Adam Lin noted that fears over a stronger Taiwan dollar prompted investors to offload export-oriented electronics stocks. The U.S. dollar's steepest daily decline against the Taiwan dollar since 2002 added to investor anxiety, closing at NT$29.950 after a significant fall on Friday.

Taiwan Semiconductor Manufacturing Co. (TSMC), a major player in the local market, saw a 1.26 percent drop, significantly impacting the Taiex's decline. Other semiconductor stocks like ASE Technology Holding Co. and Nanya Technology Corp. also faced considerable losses.

Despite the downturn, MediaTek Inc. showed resilience, experiencing a marginal decline. Lin suggested that MediaTek might have benefited from foreign institutional investors moving funds into large-cap tech stocks amid the currency fluctuations.

Overall, foreign institutional investors purchased a net NT$24.46 billion worth of shares on the main board, despite the Taiex's fall. However, other electronics hardware makers, including Hon Hai Precision Industry Co. and Quanta Computer Inc., were not spared from the forex impact.

The financial sector also faced challenges, with companies like Fubon Financial Holding Co. and Cathay Financial Holding Co. experiencing significant declines due to concerns over the reduced value of overseas assets.

Conversely, domestic demand-oriented stocks remained unaffected by the Taiwan dollar's rise, with companies like Uni-President Enterprises Corp. and Great Wall Enterprise Co. posting gains. The construction industry also saw an uptick, with King's Town Construction Co. reaching the maximum daily increase.

Lin cautioned that if the Taiwan dollar continues to appreciate rapidly, further pressure on the Taiex is anticipated, advising investors to maintain a substantial cash reserve.