Taipei: Shares in Taiwan experienced a significant downturn on Tuesday, with the benchmark Taiex index dropping almost 800 points. The decline was driven primarily by the electronics sector as market sentiment weakened due to ongoing military conflicts in the Middle East, dealers reported.
According to Focus Taiwan, the Taiex, which is the Taiwan Stock Exchange’s benchmark index, fell by 795.17 points, or 2.45 percent, to close at 31,722.99. The index fluctuated between 31,705.99 and 32,453.38 throughout the trading session, with a total turnover of NT$792.45 billion (US$24.49 billion). Despite attempts to rebound following a report by the Wall Street Journal that U.S. President Donald Trump was open to ending the conflict with Iran without reopening the Strait of Hormuz, selling pressure resurfaced. This led to a significant drop in large-cap tech stocks, marking the index’s 12th steepest daily point loss in history.
Market analyst Adam Lin from Moore Securities Investment Consulting highlighted investor skepticism towards Trump’s statement, given the volatile nature of the situation. Lin noted that many institutional investors were closing their books for the current quarter, leading to a trimming of positions. Consequently, major tech stocks continued to decline, with Taiwan Semiconductor Manufacturing Co. (TSMC) losing 1.12 percent to close at NT$1,760.00, contributing approximately 160 points to the Taiex’s fall.
Other notable tech stocks under pressure included ASE Technology Holding Co., which dropped 7.07 percent to NT$328.50, and Nanya Technology Corp., which plunged 10 percent to NT$198.50. Additionally, Hon Hai Precision Industry Co. and Delta Electronics Inc. saw declines of 3.35 percent and 7.07 percent, respectively.
Trump’s comments also impacted crude oil prices, leading to a 4.18 percent fall in the local petrochemical index. Key players such as Nan Ya Plastics Corp. and Formosa Plastics Corp. saw declines of 9.21 percent and 4.87 percent, respectively. In the steel sector, China Steel Corp. and Tung Ho Steel Corp. experienced decreases in their stock values.
In the financial sector, Cathay Financial Holding Co. and Fubon Financial Holding Co. recorded minor losses. Lin suggested that investors should monitor the U.S. markets for potential rebounds in after-hours trading, which could influence the Taiex in the following trading session.
Foreign institutional investors sold a net NT$80.75 billion of shares on the main board on Tuesday. The Taiex had previously experienced a significant decline in March, dropping 3,691.50 points or 10.42 percent.