Taiwan shares end down amid escalating Middle East uncertainty

Taipei, March 2 (CNA) Shares in Taiwan closed lower Monday as market sentiment was hit by war in the Middle East after the United States and Israel attacked Iran over the weekend, killing that country's supreme leader Ayatollah Ali Khamenei, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended down 319.40 points, or 0.90 percent, at 35,095.09 after moving between 34,605.36 and 35,345.72. Turnover totaled NT$966.85 billion (US$30.76 billion).

"The U.S. and Israeli attacks and retaliatory strikes by Iran have pushed crude oil prices sharply higher, leading investors at home and abroad to trim their stock holdings amid concerns over the economic impact," Concord Securities analyst Kerry Huang said.

"In Taiwan, investors simply seized on the news to pocket recent gains, with tech stocks the major targets of the sell-off, although most shares recovered some of their early losses," Huang said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, set the tone, falling 1.00 percent to close at NT$1,975.00 after hitting a low of NT$1,940.00.

That contributed to a 0.87 percent drop in the bellwether electronics index to 2,175.24, off a low of 2,133.77.

IC packaging and testing services provider ASE Technology Holding Co. shed 4.39 percent to end at NT$370.50, while memory chip supplier Nanya Technology Corp. showed resilience, falling only 0.18 percent to close at NT$285.00.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. fell 1.65 percent to end at NT$239.00, while Quanta Computer Inc., another AI server maker, rose 3.26 percent to close at NT$301.00 on its relatively low valuation.

By contrast, among non-tech stocks, Formosa Petrochemical Corp. benefited from higher oil prices, gaining 3.67 percent to end at NT$56.50, but Nan Ya Plastics Corp. lost 2.51 percent to close at NT$89.50 and Formosa Plastics Corp. ended down 1.74 percent at NT$50.70.

Elsewhere among old economy stocks, garment supplier Eclat Textile Co. shed 2.01 percent to close at NT$414.50, while rival Makalot Industrial Co. added 0.16 percent to end at NT$320.50.

In the financial sector, which lost 2.15 percent, Cathay Financial Holding Co. fell 2.26 percent to close at NT$77.90 and Fubon Financial Holding Co. dropped 1.27 percent to end at NT$93.00.

"Although the Taiex recouped parts of its earlier losses today, it is hard to predict the floor for the index as long as the geopolitical unease continues," Huang said. "Uncertainty is the last thing the market wants to see."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$38.99 billion in shares on the market Monday.