Taiwan shares end down amid lingering tariff concerns

Taipei, July 14 (CNA) Shares in Taiwan closed lower Monday as investors remained concerned U.S. President Donald Trump's tariff policies after he intensified trade tensions by announcing a 30 percent levy on imports from Europe and Mexico over the weekend, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended down 136.06 points, or 0.60 percent, at 22,614.97 after moving between 22,525.66 and 22,735.23. Turnover totaled NT$271.28 billion (US$9.28 billion).

"Investors remained jittery about the U.S. tariffs as they saw witnessed Trump came up with big threats to close allies," Mega International Investment Services analyst Alex Huang said.

According to the White House, the tariffs will go into effect Aug. 1 but before that, negotiations could be held to reach a better deal.

"Trump just moved the July 9 deadline to Aug. 1 and uncertainties remain," Huang said. "Investors have been cautious how Taiwan will strike a deal. But, to me, no news is good news as talks between Taiwan and the U.S. still continue."

Huang said the bellwether electronics sector led the downturn on the broader market as investors locked in profits built by the sector last week, helping the Taiex rebound.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock here, fell 0.45 percent to close at NT$1,095.00 after coming off a low of NT$1,085.00. TSMC's losses represented a 40-point fall in the Taiex.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 2.46 percent to end at NT$1,385.00, and TSMC's application specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. dropped 2.80 percent to close at NT$1,215.00.

In addition, Alchip Technologies Inc., another ASIC designer, fell 3.50 percent to end at NT$3,310.00.

Also in the tech sector, which lost 0.86 percent, iPhone assembler and artificial intelligence server maker Hon Hai Precision Industry Co. dropped 0.62 precent to close at NT$160.50, and Quanta Computer Inc., another AI server supplier, ended down 1.28 percent at NT$269.50.

"With buying rotating out of the tech sector, investors parked their money in the petrochemical industry due to relatively low valuations after recent sell-off," Huang said. "But, I have to say fundamentals in the industry remain fragile."

With the petrochemical index rising 3.34 percent to cap the downturn on the Taiex, Formosa Plastics Corp. rose 5.00 percent to close at NT$35.70 and Nan Ya Plastics Corp. ended up 2.63 percent at NT$27.35.

In addition, Formosa Chemicals & Fibre Corp. gained 3.61 percent to close at NT$22.95, and Formosa Petrochemical Corp. rose 1.39 percent to end at NT$36.40.

On the other hand, Eclat Textile Co. shed 4.04 percent to close at NT$380.00, and Makalot Industrial Co. ended down 2.00 percent to end at NT$245.00.

Elsewhere in the old economy sector, Shihlin Electric & Engineering Corp. lost 0.80 percent to close at NT$187.00, but Fortune Electric Co. gained 5.53 percent to end at NT$611.00.

In the mixed financial sector, which lost 0.07 percent, Fubon Financial Holding Co. closed unchanged at NT$82.60, while Cathay Financial Holding Co. rose 1.12 percent to end at NNT$63.20.

"Judging from last ditch buying in TSMC, the Taiex is expected to see strong technical support at around 22,000, closer to the 20-day moving average of 21,773," Huang said.

"In addition to the technical factor, the Taiex could be moved by U.S. inflation data, which will be due Tuesday, an indicator of the Federal Reserve's policy."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$2.95 billion in shares on the market Monday.