Taiwan shares end down ahead of Nvidia's results, Fed meeting minutes

Taipei, Nov. 19 (CNA) Shares in Taiwan closed lower Wednesday after giving up earlier gains, as investors stayed cautious ahead of an Nvidia Corp. investor conference and the release of meeting minutes by the U.S. Federal Reserve.

The Taiex ended down 176.00 points, or 0.66 percent, at the day's low of 26,580.12, off a high of 26,902.97, after last-ditch selling in contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) added pressure to the market, dealers said. Turnover totaled NT$494.34 billion (US$15.84 billion).

"The bellwether electronics sector failed to stage a successful technical rebound today as tech stocks saw their gains eroded amid lingering valuation concerns after recent strong gains among AI stocks," Cathay Futures Consultant analyst Tsai Ming-han said.

"Investors just waited for Nvidia's results and its guidance to justify tech valuations so they continued to pocket profits built recently for now with TSMC in focus," Tsai said.

"The Taiex consolidated also because of growing concerns over the Fed's next move [regarding a rate-hike cycle] as many investors simply wanted to have the Fed's meeting minutes [later on Wednesday] for a clearer picture," Tsai said. "That's why nontech stocks largely moved in weakness."

TSMC, the most heavily weighted stock here, lost 0.71 percent to close at NT$1,395.00 after hitting a high of NT$1,415.00. The stock's fall from the day's high cost the Taiex about 160 points.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 0.85 percent to end at NT$1,160.00 and IC packaging and testing services provider ASE Technology Holding Co. shed 2.56 percent to end at NT$209.50.

Bucking the downturn, United Microelectronics Corp., a smaller contract chipmaker, ended up 0.34 percent at NT$44.35.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in market value, dropped 0.43 percent to close at NT$229.00, and graphics card vendor Giga-Byte Technology Co. shed 2.64 percent to end at NT$239.50.

In the old economy sector, Formosa Plastics Corp. lost 3.49 percent to close at NT$40.05, and Nan Ya Plastics Corp. shed 6.11 percent to end at NT$53.80. In addition, Shihlin Paper Corp. slid 1.29 percent to close at NT$53.60 and rival Cheng Loong Corp. ended down 1.11 percent at NT$17.80.

With the financial sector down 0.53 percent, Fubon Financial Holding Co. lost 1.56 percent to close at NT$88.10, and Cathay Financial Holding Co. fell 0.93 percent to end at NT$64.20.

"Investors had better watch closely how the U.S. markets will react to Nvidia's results and Fed's meeting minutes, which will in turn dictate the Taiwan market," Tsai said. "But, I expect the nearest technical support around 26,500 points."

According to the TWSE, foreign institutional investors sold a net NT$25.69 billion worth of shares on the main board on Wednesday.