Taiwan shares end down on reduced turnover amid Middle East conflict

Taipei, March 6 (CNA) Shares in Taiwan closed slightly lower Friday after moving in a narrow range as turnover shrank amid the expanding military conflict in the Middle East, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended down 73.40 points, or 0.22 percent, at 33,599.54 after fluctuating between 33,322.52 and 33,829.49.

Turnover totaled NT$631.11 billion (US$19.95 billion), down from NT$793.65 billion seen Thursday.

"Look at the Taiex's movement. I think many investors felt relieved to some extent as they saw other regional markets such as Tokyo and Hong Kong rebound this morning despite the ongoing war in the Middle East," MasterLink Securities analyst Tom Tang said.

"Today's reduced turnover showed that many investors turned calm after recent wild fluctuations," Tang said. "Investors still had faith that tech stocks will continue to give high cash dividends during the current AI boom."

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, dropped 0.53 percent to close at NT$1,890.00, off a low of NT$1,880.00.

Also coming off their day's lows, smartphone IC designer MediaTek Inc. dropped 0.56 percent to end at NT$1,765.00, while application-specific integrated circuit (ASIC) designer Alchip Technologies Ltd. gained 1.22 percent to close at NT$3,310.00.

Elsewhere in the tech sector, AI server maker Quanta Computer Inc. lost 0.17 percent to end at NT$289.00, but rival Wistron Corp. rose 1.56 percent to close at NT$130.50.

AI server supplier and iPhone assembler Hon Hai Precision Industry Co. slid 0.45 percent to end at NT$223.00, while printed circuit board producer Gold Circuit Electronics Inc. gained 7.61 percent to close at NT$792.00.

"Another bright spot was that raw material stocks attracted bargain hunting on their low valuations, led by the petrochemical industry on hopes that a spike in international crude oil prices will boost product prices," Tang said.

With the petrochemical index rising 1.58 percent, Formosa Plastics Corp. gained 5.91 percent to end at NT$50.20, and Formosa Chemicals & Fibre Corp. added 4.98 percent to close at NT$46.00.

Taita Chemical Co. soared 10 percent, the maximum daily increase, to end at NT$13.95.

In the steel industry, China Steel Corp., Taiwan's largest steel maker, rose 3.11 percent to close at NT$19.90, and Chung Hung Steel Corp. ended up 5.25 percent at NT$18.05.

The financial sector fell 0.27 percent in line with the broader market, with Fubon Financial Holding Co. down 1.88 percent to close at NT$88.80, but Yuanta Financial Holding Co. gained 1.21 percent to end at NT$45.90.

"U.S. stock futures are rising, indicating a higher opening on the spot market tonight," Tang said. "As long as U.S. markets stabilize, the Taiex is expected to continue its consolidation, paving the path for another upturn," Tang said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$35.24 billion in shares on the market Friday.