Taiwan shares end down on Middle East conflict, but losses capped

Taipei, March 13 (CNA) Shares in Taiwan closed lower Friday due to the ongoing military conflict in the Middle East, but losses were capped as bargain hunters turned active to pick up large-cap tech stocks, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 181.54 points, or 0.54 percent, at 33,400.32 after moving between 33,013.46 and 33,639.18. Turnover totaled NT$725.03 billion (US$22.68 billion).

"Compared with heavy losses in the United States overnight, the local market seemed resilient on ample liquidity, with bargain hunters turning active and taking advantage of the initial downturn," said Hua Nan Securities analyst Kevin Su.

He was referring to a 1.56 percent fall in the Dow Jones Industrial Average and a 1.78 percent drop in the Nasdaq index overnight on a spike in crude oil prices.

"I would not rule out the possibility that government-led funds bought shares, leading the Taiex to recoup a large part of its losses," Su said.

Coming off its day's low of NT$1,840.00, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, closed at NT$1,865.00, down 1.06 percent.

The stock's recovery from its intraday low helped the Taiex recoup about 200 points.

AI server and iPhone assembler Hon Hai Precision Industry Co. ended unchanged at NT$214.50, while power management solution supplier Delta Electronics Inc. bucked the downturn, gaining 1.09 percent to close at NT$1,385.00.

"Judging from the recovery of the three top tech stocks, I think optimism toward global AI development continued to lend support to the Taiex, helping it fend off geopolitical unease," Su said.

A supply shortage again gave select memory chip suppliers a boost, with Macronix International Corp. soaring 10 percent, the maximum daily increase, to end at NT$108.50, but Winbond Electronics Corp. closed unchanged at NT$109.00.

In the old economy sector, some petrochemical stocks that provide raw materials for semiconductors continued to move higher amid the AI boom, Su said.

Among them, Nan Ya Plastics Corp. rose 7.74 percent to close at NT$83.50, and Taita Chemical Co. gained 4.07 percent to end at NT$15.30.

Elsewhere, however, China Steel Corp., Taiwan's largest steel maker, fell 1.29 percent to close at NT$19.10, and Tung Ho Steel Corp. slid 4.07 percent to end at NT$77.70.

With the financial sector ending 0.49 percent lower, Fubon Financial Holding Co. dropped 1.45 percent to close at NT$88.10, and Cathay Financial Holding Co. ended down 1.10 percent at NT$71.70.

"For next week, investors should keep a close eye on what the U.S. Federal Reserve will say about the economy after its policymaking meeting, which could move the markets," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$58.02 billion in shares on the market Friday.