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Taiwan shares end down 0.28%, remain above 9,700 points

2018/11/22 16:53

Taipei, Nov. 22 (CNA) Shares in Taiwan moved slightly lower Thursday, but remained above the 9,700-point mark, as the bellwether electronics and old-economy sectors came under pressure in the wake of losses on the U.S. markets earlier in the week.

The weighted index on the Taiwan Stock Exchange (Taiex), ended down 26.81 points, or 0.28 percent, at 9,714.71 after moving between 9,702.77 and 9,792.99. Turnover was NT$99.24 billion (US$3.21 billion) during the session.

The market opened up 27.81 points at 9,769.33 and hit a high of 9,792.99 as investors reacted positively to a rebound of the U.S. markets Wednesday but selling soon emerged, pushing the market lower.

All the major stock categories lost ground except for the plastics sector, which gained 0.24 percent.

Among Taiwanese suppliers to Apple Inc., contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock on the local market, closed flat at NT$219.00, while iPhone assembler Hon Hai Precision Industry Co. lost 1.56 percent to end at NT$69.50.

Largan Precision Co., a supplier of smartphone camera lenses to Apple, dropped 2.09 percent to close at NT$3,275.00.

Although the U.S. equity markets have been highly volatile over the past week, the local market has been relatively resilient, propped up apparently by government-led funds ahead of the Nov. 24 local elections, market analyst Kevin Lin (林成蔭) said.

However, many factors will come to bear on the market's performance in the near future, including the annual Black Friday sales extravaganza on Nov. 23 and the Cyber Monday deals on Nov. 26, Lin said.

Noting that the Organization for Economic Co-operation and Development (OECD) has dropped its global economic growth forecast for 2019, Lin said that is also one of the factors that could weigh on the Taiwan market after the local government elections.

In addition, the decisions coming out of the G20 summit in Buenos Aires Nov. 30 to Dec. 1 are likely to affect market sentiment in Taiwan after the elections, he said, forecasting that the Taiex will hover around 9,600-10,000 points after Nov. 24.

According to TWSE data, foreign institutional investors sold a net NT$1.92 billion-worth of shares on the main board Thursday.

(By Wei Shu and Evelyn Kao)Enditem/pc