Taipei, Taiwan shares took a beating Wednesday morning with investor confidence badly bruised by the overnight fall on Wall Street, closing 1.1 percent down below 10,900 points.
Companies that are part of the Apple supply chain, so-called Apple concept stocks, led the downturn on the broader market, with many large-cap stocks in focus after the plunge of high-tech stocks on the U.S. market where the three major index all fell.
The Taiwan Stock Exchange main index closed down 121.13 points, or 1.10 percent, at 10,865.66 after moving between 10,853.48 and 10,939.97. Turnover totaled NT$114.319 billion (US$3.92 billion).
The market opened down 46.82 points at the day’s high of 10,939.97 following the lower U.S. stocks and losses extended until the end of the session.
Three major Apple concept stocks were in focus amid selling on the local main board, pushing down the broader market by more than 100 points at the end of trading.
Among the falling large cap stocks, Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, shed 2.39 percent to end at NT$245.00, while shares in Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., lost 1.61 percent to close at NT$3,365.00.
Meanwhile, iPhone assembler Hon Hai Precision Industry Co. dropped 1.21 percent to close at NT$90.10.
One equity analyst said that while the market could still continue its recent upward trend, investors need to keep an eye on economic indicators for February set to be released later this week.
In addition, foreign institutional investors could sell shares to pocket gains from the recent rally in the equity market, the analyst said.
Foreign institutional investors sold a net NT$8.49 billion worth of shares on the main board on Wednesday, according to the Taiwan Stock Exchange.
Source: Focus Taiwan News Channel