Taiwan shares end down; turnover dips to 2nd lowest in 2024

Taipei, Sept. 11 (CNA) Shares in Taiwan closed down slightly after moving in consolidation mode Wednesday amid cautious sentiment ahead of the release of the August consumer price index (CPI) later in the day, dealers said.

With large cap tech heavyweights fluctuating in a narrow range throughout the session, turnover on Wednesday shrank to the second lowest level this year as many investors stayed on the sidelines, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 33.08 points, or 0.16 percent, at the day's low of 21,031.00, off a high of 21,134.05. Turnover totaled NT$234.81 billion (US$7.53 billion), the second lowest this year after NT$230.46 billion recorded on Jan. 29.

The market opened up 0.12 percent and soon rose to the day's high, up about 70 points in a mild technical rebound after falling 0.38 percent on Tuesday, dealers said.

The main board continued narrow fluctuations for the rest of the session before selling emerged in the late trading session with large cap tech stocks in focus, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), pushing the Taiex into negative territory by the end of the session, dealers added.

TSMC, the most heavily weighted stock on the local market, lost 0.33 percent to close at NT$901.00 after coming off a high of NT$906.00. The company's losses contributed about 25 points to the Taiex's decline and sent the electronics index lower by 0.19 percent.

"Despite the losses, TSMC stayed in consolidation as market sentiment remains cautious ahead of the release of U.S. August inflation data (due Wednesday U.S. time)," Mega International Investment Services Corp. analyst Alex Huang said.

"Without a big swing in TSMC and other big tech stocks, it was no surprise that the local main board continued to trade in low turnover and the trading session was quiet," Huang said.

TSMC's selling was seen among other semiconductor stocks with smartphone IC designer MedidaTek Inc. falling 1.77 percent to end at NT$1,110.00, and IC packaging and testing services provider ASE Technology Holding Co. shedding 1.73 percent to close at NT$142.00. Bucking the downturn, United Microelectronics Corp., a smaller contract chipmaker, rose 1.31 percent to end at NT$54.00.

Second to TSMC in terms of market value, iPhone assembler Hon Hai Precision Industry Co., also known as Foxconn on the global market, rose 0.30 percent to end at NT$169.50. "The debut of the newest iPhone 16 models yesterday failed to give a significant boost to Hon Hai and other Taiwanese suppliers as the new gadgets delivered little surprise to the market."

Also in the electronics sector, artificial intelligence server maker Quanta Computer Inc. rose 1.04 percent to close at NT$242.00, while PC brand Acer Inc. shed 1.22 percent to end at NT$40.50.

While tech stocks largely moved in the doldrums, old economy industries appeared mixed, Huang said.

The petrochemical index rose 0.60 percent with Nan Ya Plastics Corp. up 2.45 percent to close at NT$39.80, Formosa Chemicals & Fibre Corp. rose 2.04 percent to end at NT$37.50. In addition, Formosa Plastics Corp. gained 0.45 percent to close at NT$44.40, and Formosa Petrochemical Corp. ended up 0.11 percent at NT$47.45.

"Without signs of a recovery in global demand at a time of a supply glut, I think the gains among petrochemical stocks today were just technical in nature on their low valuations," Huang said.

After reporting strong August sales in the booming tourism market, shares in EVA Airways rose 2.16 percent to close at NT$35.45, and China Airlines gained 1.00 percent to end at NT$20.25.

Elsewhere in the old economy sector, food brand Uni-President Enterprises Corp. lost 1.03 percent to close at NT$86.10, and rival AGV Products Corp. dropped 0.81 percent to end at NT$12.30. In addition, Taiwan Cement Corp. fell 0.48 percent to close at NT$31.30, and Asia Cement Corp. ended down 0.78 percent at NT$44.50.

While the financial sector lost 0.79 percent, Shin Kong Financial Holding Co. attracted strong buying, up 3.85 percent to close at NT$13.50 as investors expected Taishin Financial Holding Co. to raise its price amid competition from CTBC Financial Holding Co. to take over Shin Kong Financial.

Taishin Financial, which lost 1.60 percent to end at NT$18.50, and Shin Kong Financial will hold board meetings Wednesday afternoon and a hike in the acquisition price could be discussed then.

In addition, CTBC Financial fell 1.22 percent to close at NT$32.30.

After Wednesday's CPI data, Washington will report the August producer price index on Thursday U.S. time.

"I expect consolidation will continue to dominate trade on the local main board until a policymaking meeting scheduled by the U.S. Federal Reserve for next week," Huang said.

According to the TWSE, foreign institutional investors sold a net NT$8.51 billion worth of shares on the main board Wednesday.