Taiwan shares end down as TSMC closes at day's low

Taipei, Jan. 8 (CNA) Shares in Taiwan closed lower Wednesday as the bellwether electronics sector came under pressure in the wake of heavy losses suffered by tech stocks in the United States overnight, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended down 243.94 points, or 1.03 percent, at 23,407.33 after moving between 23,388.63 and 23,671.28. Turnover totaled NT$359.86 billion (US$10.97 billion).

The market opened down 0.55 percent as electronics heavyweights, such as Taiwan Semiconductor Manufacturing Co. (TSMC), slid following a 1.89 percent fall in the tech-heavy Nasdaq index overnight.

That weakness continued to the end of the session as last ditch selling sent TSMC to the day's low, dealers said.

After a 3.90 percent fall in its American depositary receipts Tuesday, TSMC lost 2.21 percent to close at NT$1,105.00. Its losses contributed about 200 points to the Taiex's decline.

"Fears over inflation in the U.S. re-emerged to push up the benchmark 10-year treasury yield overnight, prompting investors to cash out liquid tech stocks, and TSMC was one of the victims," Hua Nan Securities analyst Kevin Su said.

"Fortunately, TSMC shares stayed above its nearest technical support of NT$1,100.00, and its upward trend was unaffected," Su said.

Among other large-cap semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. shed 2.00 percent to end at NT$171.50, and smartphone IC designer MediaTek Inc. dropped 1.34 percent to close at NT$1,470.00.

Bucking the downturn, United Microelectronics Corp., a smaller contract chipmaker, rose 0.83 percent to end at NT$42.70.

Electronics heavyweight Hon Hai Precision Industry Co. lost 1.05 percent to close at NT$188.00, and AI server maker Quanta Computer Inc. dropped 0.17 percent to end at NT$295.00, but gaming computer brand Micro-Star International Co. rose 4.84 percent to close at NT$195.00.

"Non-tech stocks largely moved lower in line with the broader market," Su said. "But the bright spot was the biotech industry, which attracted buying at a time of rising flu and measles infections at home."

With the biotech index closing 0.54 percent higher, test kit brand Panion & BF Biotech Inc. rose 1.71 percent to close at NT$83.50, and drug developer Chunghwa Chemical Synthesis & Biotech Co. gained 4.68 percent to end at NT$34.70.

Elsewhere in the old economy sector, Formosa Plastics Corp. shed 3.76 percent to close at NT$33.25 and Nan Ya Plastics Corp. dropped 2.17 percent to end at NT$29.30.

In the financial sector, Fubon Financial Holding Co. lost 0.87 percent to close at NT$91.10, and Cathay Financial Holding Co. dropped 0.43 percent to end at NT$68.80, while E. Sun Financial Holding Co. closed up 0.74 percent at NT$27.30.

"Washington will release its December nonfarm payroll data Friday. It's worth watching for possible insight for more clues about the Federal Reserve's next move," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$16.20 billion in shares on the market Wednesday.