Taiwan shares end down as TSMC in consolidation

Taipei, July 21 (CNA) Shares in Taiwan closed lower Monday with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) falling into consolidation mode amid lingering concerns over U.S. tariff policies, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE) ended down 42.57 points, or 0.18 percent, at 23,340.56 after moving between 23,243.79 and 23,403.83. Turnover totaled NT$304.04 billion (US$10.33 billion).

After rising 1.17 percent on Friday following TSMC's upbeat guidance for 2025, the Taiex pulled back Monday as investors took profits, using the Trump administration's talk of "reciprocal tariffs" as a pretext.

However, bargain hunters emerged late in the session, picking up shares of the contract chipmaker and helping the broader market recover part of its earlier losses, dealers said.

"Market sentiment remains bothered by Trump's tariffs as Taiwan's negotiations with the United States have not yielded any conclusion," Moore Securities Investment Consulting analyst Adam Lin said.

"TSMC, again dictated the broader market as investors turned calm after their aggressive buying on Friday amid optimism over the chipmaker's business outlook," Lin said, referring to the company's historic high net profit in the second quarter and an upgrade of sales growth for 2025 to 30 percent from 24-26 percent.

"However, caution over the tariff issue came back to haunt the market," Lin said. "Without any conclusion, the Taiex could move narrowly in the short term."

TSMC, the most heavily weighted stock in Taiwan, lost 0.43 percent to close at NT$1,150.00 after coming off a low of NT$1,135.00. The stock's rise from the day's low helped the Taiex recoup about 160 points Monday.

IC packaging and testing services provider ASE Technology Holding Co. fell 0.97 percent to end at NT$152.50, and TSMC's application specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. shed 3.63 percent to close at NT$1,195.00.

Bucking the downturn, smartphone IC designer MediaTek Inc. rose 1.06 percent to end at NT$1,425.00.

Also on the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. lost 0.30 percent to close at NT$165.00, while Quanta Computer Inc., another AI server supplier, stayed unchanged at NT$273.50.

"Buying continued rotating," Lin said. "Today, select old economy stocks attracted buying."

With the petrochemical index up 0.98 percent, shares in Nan Ya Plastics Corp. rose 1.36 percent to close at NT$29.80, and Formosa Chemicals & Fibre Corp. gained 1.38 percent to end at NT$25.75.

Teco Electric & Machinery Co. rose 1.26 percent to close at NT$48.40 after the company announced over the weekend it won two hyperscale data center engineering contracts in Malaysia. In addition, Shihlin Electric & Engineering Corp. added 0.54 percent to end at NT$185.00.

Elsewhere in the old economy sector, China Steel Corp., the largest steel maker in Taiwan, rose 1.05 percent to close at NT$19.20, and Chung Hung Steel Corp. added up 0.12 percent at NT$42.40.

In the financial sector, which lost 0.73 percent, Fubon Financial Holding Co. dropped 0.72 percent to close at NT$83.10, and Cathay Financial Holding Co. dropped 0.48 percent to end at NT$62.80.

"Investors should continue to watch closely the ongoing earnings season at home and in the U.S., in particular results from tech firms which could move the markets," Lin said.

According to the TWSE, foreign institutional investors bought a net NT$4.13 billion worth of shares on the main board Monday.