Taiwan shares end lower amid Middle East concerns

Taipei, March 16 (CNA) Shares in Taiwan fell again Monday as investor sentiment remained dampened by the impact of the U.S.-Israel war against Iran, including the rise in international crude oil prices, analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 57.81 points, or 0.17 percent, at 33,342.51 after moving between 33,278.06 and 33,875.81. Turnover totaled NT$730.39 billion (US$22.76 billion).

Following Friday's 0.54 percent fall, the Taiex gained around 360 points in the first five minutes of trading on Monday, but selling quickly emerged to bring it back to the previous day's close for much of the session.

A sell-off in the final minute of trading drove the index into negative territory.

"Crude oil prices have become the market's major concern. It was not surprising that investors capitalized on the early upturn to send the Taiex lower," Moore Securities Investment Consulting analyst Adam Lin said.

He was referring to the steady rise in Brent crude prices, which reached US$106 per barrel Sunday.

"Today, funds rotated out of large-cap tech stocks, including TSMC (Taiwan Semiconductor Manufacturing Co.), keeping the Taiex underwater again," Lin said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, fell 1.07 percent to close at the day's low of NT$1,845.00, and its losses cost the Taiex 120 points.

Power management solution provider Delta Electronics Inc., second to TSMC in market value, also lost 1.81 percent to end at NT$1,360.00, while AI server maker and iPhone assembler Hon Hai Precision Industry Co. bucked the downturn, rising 0.93 percent to close at NT$216.50 ahead of its investor conference later in the day.

Buying also rotated to memory chip suppliers after U.S.-based Micron Technology, Inc. rose 5.43 percent in the U.S. on Friday.

Nanya Technology Corp. and Macronix International Co. each surged 10 percent, the maximum daily increase, to end at NT$261.50 and NT$119.00, respectively.

Outside the tech sector, Lin said, the financial sector also benefited from rotational buying, though Lin would not rule out that "the buying came from government-led funds to support the Taiex."

With the financial sector up 0.41 percent, Cathay Financial Holding Co. rose 0.98 percent to close at NT$72.40 and Fubon Financial Holding Co. added 0.79 percent to end at NT$88.80.

In addition, Yuanta Financial Holding gained 3.00 percent to close at NT$44.60 and CTBC Financial Holding Co. ended up 1.17 percent at NT$51.90.

Lin said select petrochemical stocks attracted strong buying due to their tech investments.

Among them, Nan Ya Plastics Corp., the parent of Nanya Technology, surged 6.83 percent to close at NT$89.20, and Formosa Plastics Corp., which has cross shareholdings with Nan Ya Plastics, gained 2.97 percent to end at NT$46.85.

"The annual GPU Technology Conference (GTC) will take place and the U.S. Federal Reserve will hold a policymaking meeting later this week. Keep a close eye on these events," Lin suggested.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$43.95 billion in shares Monday.