Taiwan shares end down as TSMC falls below NT$1,000 mark

Taipei, Nov. 29 (CNA) Shares in Taiwan moved slightly lower Friday, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) saw gains built up during the session eroded at the end to close below the NT$1,000 mark, dealers said.

TSMC's weakness pushed the bellwether electronics sector and the broader market lower amid caution toward tech stocks on U.S. markets, which remained in consolidation mode.

Taiwan electronics stocks also remained under pressure from U.S. President-elect Donald Trump's threats to hike tariffs, dealers said.

The Taiex, the weighted index on the local market, ended down 36.40 points, or 0.16 percent, at 22,262.50 after moving between 22,055.38 and 22,429.86. Turnover totaled NT$306.06 billion (US$9.41 billion).

The market opened down 0.43 percent and selling focused on large cap electronics stocks continued briefly, pushing down the Taiex to the day's low within the first 10 minutes of the session, dealers said.

Bargain hunters then jumped in, picking up tech heavyweights such as TSMC to eventually vault the index above the previous closing level by about 130 points before selling reemerged in the final few minutes to send TSMC below NT$1,000.0 and the Taiex into negative territory, dealers said.

"U.S. markets were closed Thursday for the Thanksgiving holiday but investors here remained concerned over recent weakness among U.S.-listed tech stocks," Cathay Futures Consultant Tsai Ming-han said.

Tsai was referring to a 1.51 percent fall on the Philadelphia Semiconductor Index and a 0.60 percent decline on the tech-heavy Nasdaq on Wednesday.

Tech stocks on U.S. markets are currently in correction mode after a robust performance in the first half of this year, and more losses were possible, Tsai said.

"Trump's tariff hike threats have also dampened market sentiment toward the tech sector, leading investors to cash in when those stocks moved higher during the session. TSMC simply fell victim to such sentiment," Tsai said.

TSMC, the most heavily weighted stock in the local market, lost 0.90 percent to close at NT$996.00. It was the first time the stock had fallen below NT$1,000 since Oct. 4, when it ended at NT$977.00.

TSMC's fall from its high of NT$1,010.00 cost the Taiex about 110 points.

Due to TSMC's weakness, the electronics index ended down 0.13 percent at 1,210.69 after hitting a high of 1,223.04.

Other semiconductor stocks traded mixed. United Microelectronics Corp., a smaller contract chipmaker, fell 0.80 percent to end at NT$43.55.

Smartphone IC designer MediaTek Inc. stayed unchanged at NT$1,255.00, while IC packaging and testing services provider ASE Technology Holding Co. rose 3.06 percent to end at NT$151.50.

Outside the semiconductor industry, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, also came off an early high of NT$199.00 to close unchanged at NT$195.50.

Hon Hai also rolls out artificial intelligence servers in a partnership with U.S.-based Ai chip designer Nvidia Corp.

Among other AI-related stocks, Quanta Computer Inc. rose 1.04 percent to end at NT$291.00, while rival Wistron Corp. closed unchanged at NT$11.35, and Wistron's cloud-enabled services subsidiary Wiwynn Corp. shed 2.27 percent to end at NT$1,935.00.

"Old economy and financial stocks largely came under pressure amid fragile sentiment as well, putting the broader market under more pressure," Tsai said.

Formosa Petrochemical Corp. lost 2.50 percent to close at NT$40.90, and Formosa Plastics Corp. lost 3.16 percent to end at NT$41.35.

Meanwhile, food brand Uni-President Enterprises Corp. lost 1.63 percent to close at NT$84.50, while Wei Chuan Foods Corp. ended unchanged at NT$18.30.

The construction industry, however, bounced back from recent losses caused by the central bank's selective credit controls on the housing market, rising 1.46 percent, dealers said.

Kindom Development Co. rose 2.42 percent to close at NT$59.20, Highwealth Construction Corp. gained 3.45 percent to end at NT$47.95, and Huang Hsiang Construction Corp. added 3.83 percent to close at NT$75.90.

In the financial sector, which lost 0.7 percent, Fubon Financial Holding Co. lost 1.01 percent to end at NT$88.00, and Cathay Financial Holding Co. dropped 0.90 percent to close at NT$65.70. Yuanta Financial Holding Co. ended unchanged at NT$33.25.

"Investors should pay close attention to Thanksgiving holiday and Black Friday sales, which could move the U.S. markets and global markets including Taiwan," Tsai said.

"But, I think consolidation on the Taiex will continue before Trump takes office. The index could fluctuate between 22,000 and 22,600 points."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$26.47 billion in shares on Friday.