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Taiwan shares end below monthly moving average

2017/09/20 16:40:01

CNA file photo

Taipei, Sept. 20 (CNA) Shares in Taiwan moved lower to close below the benchmark index's monthly moving average of 10,561 points on Wednesday as investors turned cautious, waiting to see what the U.S. Federal Reserve will decide to do on interest rates.

The weighted index on the Taiwan Stock Exchange closed down 56.97 points, or 0.54 percent, at 10,519.17, after moving between 10,490.71 and 10,589.19, on turnover of NT$126.854 billion (US$4.20 billion).

The local market's performance was the weakest among all Asian markets on the day.

Despite a higher Wall Street overnight, the market opened down 7.56 points and selling in large-cap stocks in the bellwether electronics sector emerged, pushing the weighted index to below the 10,500-point mark at one point to hit its lowest level this month.

Among the falling high-tech heavyweights, iPhone assembler Hon Hai Precision Industry Co. (鴻海) lost 3.18 percent to end at NT$106.50, while Largan Precision Co. (大立光), a smartphone camera lens supplier, fell 2.49 percent to end at NT$5,690.00.

Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the most heavily weighted stock, ended unchanged at NT$221.50, while Cathay Financial Holding Co. (國泰金) rose 0.31 percent to end at NT$48.25.

Analysts attributed the fall in the overall market to foreign institutional investors who have recently held back from making major bets ahead of the Federal Reserve's policy meeting and sold a net NT$3.814 billion in shares on Taiwan's market on Wednesday.

The Fed is expected to announce whether it will raise interest rates at the end of its two-day policymaking meeting on Wednesday U.S. time.

(By Evelyn Kao)