Taiwan shares end down amid Middle East tensions

Taipei, June 16 (CNA) Shares in Taiwan closed lower Monday amid tensions in the Middle East as the military conflict between Israel and Iran entered its fourth day, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended down 23.05 points, or 0.10 percent, at 22,049.90 after moving between 21,936.38 and 22,094.60. Turnover totaled NT$288.46 billion (US$9.78 billion).

"Geopolitical unease continued to dictate global markets," MasterLink Securities analyst Tom Tang said.

"But Asian markets already reflected worries over tensions in the Middle East on Friday, and they appeared resilient today, including in Taiwan."

Tang said that as the Taiex moved closer to the nearest technical support ahead of the 22,000 point mark, bargain hunters turned active.

"So, TSMC (Taiwan Semiconductor Manufacturing Co.) came off its low, helping the broader market recoup most of the losses," Tang said. "TSMC got the broader market moving again."

TSMC, the most heavily weighted stock here, fell 0.49 percent to close at NT$1,025.00, off a low of NT$1,015.00.

TSMC's recovery from its day's low allowed the Taiex to recoup about 80 points, on a day when the electronics index hit a low of 1,206.83 before ending down only 0.17 percent at 1,215.61.

"In the booming era of artificial intelligence development, I think TSMC is likely to continue to move above its 10-day moving average of NT$1,011.00 as U.S.-based AI chip designer Nvidia Corp. stays resilient," Tang said.

Among other semiconductor stocks, which also came back from early lows, IC packaging and testing services provider ASE Technology Holding Co. gained 1.05 percent to close at NT$145.00, and smartphone IC designer MediaTek Inc. rose 0.40 percent to end at NT$1,255.00.

Tang said the Israel-Iran conflict, triggered on June 13 when Israel attacked the heart of Iran's nuclear and military structure, cut both ways as petrochemical stocks in the local market rose after international crude oil prices surged.

With the petrochemical index up 1.78 percent, Formosa Plastics Corp. rose 2.04 percent to close at NT$37.50, and Nan Ya Plastics Corp. gained 2.89 percent to end at NT$30.25.

Among textile stocks sensitive to crude oil prices, Far Eastern New Century Corp. rose 0.60 percent to close at NT$33.30, and Eclat Textile Co. gained 2.53 percent to end at NT$425.50.

Amid rising worries over oil supplies under geopolitical unease, renewable energy stocks attracted rotational buying with Shinfox Energy Co. rising 2.76 percent to close at NT$85.60 and J&V Energy Technology Co. adding 0.29 percent to end at NT$170.00.

Elsewhere in the old economy sector, food brand Uni-President Enterprises Corp. lost 0.38 percent to close at NT$79.40, and rival Wei Chuan Foods Corp. ended down 0.63 percent at NT$15.80.

In the financial sector, which lost 0.19 percent, Fubon Financial Holding Co. fell 0.58 percent to close at NT$86.00, and Cathay Financial Holding Co. shed 2.46 percent to end at NT$67.30.

"A narrow trading range on the Taiex on thin turnover is likely in the short term as many investors prefer to wait on the sidelines before the 90-day pause on the Trump administration's 'reciprocal' tariffs expires (in early July)," Tang said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$2.09 billion in shares on the market Monday.