Taipei: Shares in Taiwan ended slightly lower as early gains were reversed on Tuesday. Investors exercised caution due to a lack of new cues following the closure of U.S. markets for the Labor Day holiday.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange’s weighted index, closed down 54.95 points or 0.23 percent at 24,016.78. The index fluctuated between 23,890.33 and 24,295.03, with a total turnover of NT$409.64 billion (US$13.36 billion). The market initially rebounded, rising nearly 180 points, before selling pressures took over, pushing it into negative territory by the close.
Market analyst Alex Huang from Mega International Investment Services noted that investor caution persisted as they awaited new economic indicators. He highlighted the upcoming U.S. nonfarm payroll data, expected on Friday, as a potential influencer for future Federal Reserve policy.
The session saw a slight dip in the shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, which fell 0.43 percent to NT$1,160.00. Despite the dip, Huang remarked that the selling pressure on TSMC was manageable and did not significantly impact investor confidence in the company’s strong fundamentals.
Other tech stocks showed varied performances. Scientech Corp., a supplier to TSMC, saw its shares fall by 1.97 percent to NT$373.50, while MediaTek Inc., a smartphone IC designer, remained flat at NT$1,360. ASE Technology Holding Co., specializing in IC packaging and testing, rose by 0.64 percent to NT$157. Hon Hai Precision Industry Co., an assembler of iPhones and AI servers, closed unchanged at NT$198, while Giga-Byte Technology Co., a graphics card vendor, dropped 1.13 percent to NT$263.50.
In the old economy sector, Uni-President Enterprises Corp. rose by 1.03 percent to NT$78.20, whereas Wei Chuan Foods Corp. remained steady at NT$15.55. Electric machinery stocks experienced declines, with Shihlin Electric and Engineering Corp. down 2.62 percent to NT$186 and Fortune Electric Co. down 3.38 percent to NT$600.
The financial sector, however, saw an uptick, rising 1.32 percent due to bargain hunting. Fubon Financial Holding Co. led the charge with a gain of 2.72 percent to NT$86.80, followed by Cathay Financial Holding Co., which increased by 1.44 percent to NT$63.50.
Huang pointed out that the day’s selling activity pushed the Taiex below its 20-day moving average of 24,127 points, indicating potential for further losses. Nevertheless, foreign institutional investors were net buyers, acquiring NT$7.63 billion worth of shares on Tuesday, as reported by the TWSE.