Taipei: Shares in Taiwan ended lower Tuesday after moving without a clear direction as U.S. markets were closed Monday for a public holiday, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 220.49 points, or 0.47 percent, at 47,105.78 after moving between 47,023.73 and 47,578.24. Turnover totaled NT$876.66 billion (US$27.80 billion), compared with NT$997.94 billion on Monday.
According to Focus Taiwan, the index initially posted gains but soon turned lower, moving in the absence of direction from U.S. markets, which were closed for the Labor Day holiday. Moore Securities Investment Consulting analyst Adam Lin noted that while TSMC (Taiwan Semiconductor Manufacturing Co.) remained resilient and closed up, preventing further market decline, the overall turnover shrank, indicating that many investors preferred to stay on the sidelines.
Shares in contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 0.41 percent to close at NT$2,470.00, helping the Taiex trim about 80 points in losses. Other major semiconductor stocks moved lower due to profit-taking, with smartphone IC designer MediaTek Inc. falling 1.05 percent to end at NT$4,710.00, and IC packaging and testing service provider ASE Technology Holding Co. dropping 0.48 percent to close at NT$618.00.
Memory chip suppliers continued to benefit from a global supply shortage as Nanya Technology Corp. and Winbond Electronics Corp. rose 2.71 percent and 4.44 percent, respectively, to end at NT$531.00 and NT$188.00. Dealers reported heavier selling outside the semiconductor sector, with iPhone assembler and AI server maker Hon Hai Precision Industry Co. losing 1.76 percent to close at NT$251.50, and Quanta Computer Inc., another AI server supplier, ending down 5.61 percent at NT$328.00.
Power management solution provider Delta Electronics Inc. lost 2.43 percent to close at NT$1,805.00, while passive electronic components maker Yageo Corp. ended down 3.74 percent at NT$567.00. As the electronics industry faced challenges, some investors turned to select non-tech stocks as safe havens.
Food brand Uni-President Enterprises Corp. rose 1.99 percent to close at NT$76.70, and cooking oil supplier Great Wall Enterprise Co. ended up 0.77 percent at NT$52.50. Nan Ya Plastics Corp. extended its upward momentum, rising 1.95 percent to close at NT$235.00 on subsidiary Nanya Technology's upturn, while Formosa Plastics Corp. fell 2.25 percent to end at NT$65.10.
In the financial sector, which rose 1.20 percent, E. Sun Financial Holding Co. gained 4.59 percent to close at NT$45.55, and TS Financial Holding Co. climbed 4.14 percent to end at NT$42.80. However, Fubon Financial Holding Co. closed down 0.33 percent at NT$149.00.
Analyst Adam Lin indicated that with the Taiex moving closer to the historical intraday high of 48,218 seen on June 23, the market could see more volatility, but technical support is possible around the five-day moving average of 46,462. Despite the fall in the Taiex, foreign institutional investors bought a net NT$13.27 billion of shares on the main board Tuesday, according to the Taiwan Stock Exchange.