Taiwan shares end down as TSMC's initial gains reversed

Taipei, Nov. 11 (CNA) Shares in Taiwan closed lower Tuesday after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) gave up initial gains to end lower, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index, ended down 84.56 points, or 0.30 percent, at the day's low of 27,784.95, off the day's high of 28,187.70. Turnover totaled NT$566.32 billion (US$18.27 billion).

The market opened up 0.58 percent higher and rose to the day's high within 10 minutes on buying sparked by a rally on American markets overnight amid hopes the government shutdown there will end soon, dealers said.

Selling quickly emerged, however, with large cap tech stocks, in particular TSMC, in focus, sending the broader market into negative territory by the end of the session, dealers said.

TSMC, which accounts for more than 40 percent of the market's capitalization, fell 0.68 percent to close at NT$1,465.00, off a high of NT$1,495.00. Its fall from the day's high cost the Taiex about 240 points and contributed to a 0.46 percent fall in the electronics index.

"But, I think the reversal of TSMC's gains was technical in nature after its recent solid gains," Cathay Futures Consultant analyst Tsai Ming-han said. "The company continues to ride the waves of global AI development and report impressive sales growth."

Among other semiconductor heavyweights, which also fell from their highs, smartphone IC designer MediaTek Inc. dropped 0.80 percent to end at NT$1,240.00, and IC packaging and testing services provider ASE Technology Holding Co. lost 0.22 percent to close at NT$228.00.

Bucking the downturn, memory chip supplier Nanya Technology Corp. rose 1.86 percent to end at NT$164.50 on tight global supply.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in market value, lost 1.20 percent to close at NT$246.50.

Buying rotated to some printed circuit board makers, with Gold Circuit Electronics Ltd. rising 3.42 percent to end at NT$498.50.

"With the tech weakness, investors parked their funds in select old economy stocks and today, petrochemical stocks were highlighted," Tsai said.

Formosa Plastics Corp. rose 2.31 percent to close at NT$39.90, and Nan Ya Plastics Corp. gained 4.74 percent to end at NT$45.30.

Among rising retail stocks, President Chain Store Corp. added 0.63 percent to close at NT$238.00, and Shin Shin Co. rose 1.83 percent to end at NT$25.05.

In the financial sector,which rose 0.83 percent, Cathay Financial Holding Co. gained 1.57 percent to close at NT$64.80, and Fubon Financial Holding Co. ended up 0.44 percent at NT$91.00.

"While the Taiex fell slightly below the 20-day moving average (of 27,788), I expect technical support at this point will soon prompt a rebound," Tsai said. "But investors should watch to see what happens in markets in the United States."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$17.37 billion in shares on the market Tuesday.