Taiex dives over 770 points amid Middle East conflict

Taipei, March 3 (CNA) Shares in Taiwan plunged more than 770 points Tuesday following a sell-off sparked by ongoing military conflict in the Middle East, which has boosted international crude oil prices, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended down 771.44 points, or 2.20 percent, at the day's low of 34,323.65. Turnover totaled NT$1.058 trillion (US$33.52 billion), the second highest in history after NT$1.208 trillion on Feb. 26.

The market sought to rebound in the early morning session after a 0.90 percent fall on Monday, but selling reemerged, pushing down large-cap electronics stocks, which had gained sharply to drive the Taiex higher recently, dealers said.

"Look at other regional markets, Tokyo and Seoul, which came under heavy pressure this morning. There was no immediate end to the military actions in the Middle East," Concord Capital Management analyst Lu Chin-wei said.

"Local investors shifted to the sell side after the initial gains as the spike in crude prices fueled fears over inflation and the impact on the economy," Lu added.

Tech heavyweights were the major targets of the sell-off, causing the electronics index to fall 2.61 percent, Lu said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, shed 2.03 percent to close at the day's low of NT$1,935.00, contributing about 320 points to the Taiex's fall.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 4.47 percent to end at NT$1,815.00, and IC packaging and testing firm ASE Technology Holding Co. fell 2.97 percent to close at NT$359.50. Memory chip supplier Macronix International Co. and Nanya Technology Corp. tumbled 10 percent, the maximum daily decline, to end at NT$104.50 and NT$256.50, respectively.

Also in the tech sector, power management solution provider Delta Electronics Inc. slid 5.96 percent to close at NT$1,340.00, and AI server maker and iPhone assembler Hon Hai Precision Industry Co. ended down 4.18 percent at NT$229.00.

Many raw material stocks faced headwinds amid fears that rising inflation will affect consumption, Lu said.

Nan Ya Plastics Corp. lost 5.07 percent to close at NT$85.00, and Formosa Plastics Corp. dropped 1.48 percent to end at NT$49.95. China Steel Corp., Taiwan's largest steel maker, fell 0.99 percent to close at NT$20.05, and Chung Hung Steel Corp. shed 2.77 percent to end at NT$17.55.

Bucking the downturn, the financial index rose 0.12 percent.

Fubon Financial Holding Co. rose 0.11 percent to close at NT$93.10, and Mega Financial Holding Co. gained 0.50 percent to end at NT$40.40.

"I suspect government-led funds stood behind the gains, while foreign institutional investors continued to trim holdings," Lu said.

According to the TWSE, foreign institutional investors sold a net NT$94.71 billion of shares on the main board Tuesday.