Taiwan shares end down as TSMC pulls back

Taipei, Aug. 14 (CNA) Shares in Taiwan closed lower Thursday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) retreated from a historical high a session earlier in the wake of the stock's losses on the U.S. markets overnight, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 131.92 points, or 0.54 percent, at 24,238.10 after moving between 24,198.88 and 24,389.51. Turnover totaled NT$473.53 billion (US$15.82 billion).

"A strong showing made by TSMC yesterday prompted many investors to turn cautious about a possible technical pullback," Cathay Futures Consultant analyst Tsai Ming-han said. "That's why selling in TSMC shares emerged soon after the market opened as investors dumped the stock and kept cash on hand."

"The market has also watched closely the U.S. tariff policies as talks between Taipei and Washington still continue," Tsai said.

After its American depository receipts (ADRs) fell 1.17 percent overnight, TSMC lost 2.08 percent to close at the day's low of 1,175.00, retreating from Wednesday's historic closing high of NT$1,200.00. The stock's fall cost the Taiex about 200 points and sent the electronics index down by 1.05 percent.

"Fortunately, some other semiconductor stocks stayed resilient to offset the impact resulting from TSMC's downturn," Tsai said, referring to smartphone IC designer MediaTek Inc., which rose 1.46 percent to end at NT$1,390.00 and memory chip supplier Nanya Technology Corp., which added 0.65 percent to close at NT$46.35.

However, IC packaging and testing services provider ASE Technology Holding Co. ended down 0.34 percent at NT$148.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., next to TSMC in terms of market capitalization, rose 0.50 percent to close at NT$199.50, and Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., ended up 0.21 percent at NT$2,395.00.

In addition, PC brand Asustek Computer Inc. rose 0.16 percent to close at NT$641.00, while Quanta Computer Inc., another AI server supplier, fell 0.37 percent to end at NT$270.50.

"With the electronics sector largely traded in weakness, investors set sights on non-tech stocks amid the current rotational buying," Tsai said. "These non-tech stocks simply played catch-up with their tech counterparts."

The textile industry rose 2.34 percent, with Far Eastern New Century Corp. gaining 1.09 percent to close at NT$27.80 and Eclat Textile Co. soaring 6.13 percent to end at NT$407.10.

Elsewhere in the old economy sector, Asia Cement Corp. rose 0.76 percent to close at NT$39.80, while TCC Group Holdings Co. fell 3.84 percent to end at NT$23.80 after the company estimated a loss of NT$11.0 billion from a fire, which broke out at subsidiary Molie Quantum Energy Corp.'s lithium-ion battery cell plant in July.

In the financial sector, which rose 1.13 percent, Fubon Financial Holding Co. gained 1.60 percent to close at NT$88.80, and Cathay Financial Holding Co. ended up 1.41 percent at NT$64.60.

"The Taiex moved closer to a historical intraday high of 24,416 points, investors just refrained from buying," Tsai said. "But, as AI stocks in the United States continue to ride the waves of an AI boom, I do not think the Taiex, which is highly correlated with the U.S. markets, will suffer a plunge anytime soon."

According to the TWSE, foreign institutional investors sold a net NT$4.46 billion worth of shares on the main board Thursday.