Taipei, Shares in Taiwan ended lower Friday, falling below 16,000 on high turnover after the stock market hit a new record during the session.
The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, ended down 90.80 points, or 0.58 percent, at 15,616.39 on expanded turnover of NT$433.16 billion (US$15.2 billion).
Boosted by a 6 percent rise overnight by the American depositary receipts (ADR) of Taiwan Semiconductor Manufacturing Company (TSMC), the weighted index soared 334 points at one point, reaching the historical high of 16,041.59 and fluctuating in a wide range of 426.48 points.
However, with several heavyweight large-cap electronics stocks losing ground, the Taiex eventually closed below the five-day moving average of about 15,636. Despite Friday’s fall, the weighted index still rose 152.44 points for the week.
World leading contract chipmaker TSMC, the most heavily weighted stock on the local market, surged 5.5 percent to a new high of NT$625 during the session before ending down 1.52 percent at NT$601.
Around 91.3 million TSMC shares changed hands — the largest volume in a month and a half.
Hon Hai Precision Industry Co., known as Foxconn globally, opened higher but closed NT$0.5 lower to end at NT$115.5, while United Microelectronics Corp., a smaller contract chipmaker, lost NT$1.15 to finish at NT$48.75.
Shares of major shipping companies, such as Evergreen Marine Corp., the largest shipping company in Taiwan, U-Ming Marine Transport Corp., and Wan Hai Lines Ltd., all fell by the maximum 10 percent to dip below their monthly moving average, ending at NT$34.25, NT$23.35 and NT$43.25, respectively.
Stock analyst Victor Bai (白易弘) said it was anticipated the local bourse would see the selling of TSMC shares on Friday after the 6 percent increase in its ADR the previous night.
Profit-taking selling of shares in TSMC and shipping companies in the wake of recent increases is the main reason the weighted index rose and fell sharply during the session, Bai said.
Analysts are waiting to see whether buying shifts from the bellwether semiconductor sector to the old-economy stocks when the market opens on Monday, he said.
Source: Focus Taiwan News Channel