Taiwan shares plunge after Trump vows to attack Iran power plants

Taipei, March 23 (CNA) Shares in Taiwan plunged over 800 points Monday following U.S. President Donald Trump's threat to "obliterate" Iran's power plants if the Strait of Hormuz was not reopened by Monday evening.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 821.38 points, or 2.45 percent, at 32,722.50 despite coming off a low of 32,461.09, down 1,082.79. Turnover totaled NT$675.49 billion (US$20.86 billion).

"Geopolitical unease continued to dictate market sentiment around the world as there are no immediate signs of an end to the military conflicts in the Middle East," Moore Securities Investment Consulting analyst Adam Lin said.

"In Taipei, large-cap tech stocks were in focus in the sell-off as foreign institutional investors were sensitive to such political tensions," Lin said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$83.92 billion worth of shares on Monday.

With the electronics index shedding 2.50 percent, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, fell 1.63 percent to close at NT$1,810.00.

Power management solution provider Delta Electronics Inc., second to TSMC in market value, slid 4.41 percent to end at NT$1,410.00, and AI server maker and iPhone assembler Hon Hai Precision Industry Co., No. 3 after Delta Electronics, also shed 3.45 percent to close at NT$196.00.

Lin said local investors, many of whom recently stood on the buy side, also trimmed holdings of their favorites such as printed circuit board stocks, with WUS Printed Circuit Co. plunging 10 percent, the maximum daily decline, to end at NT$120.00 and Gold Circuit Electronics Ltd. falling 2.63 percent to close at NT$962.00.

"Such a downbeat mood spread to nontech heavyweights, adding downward pressure to the broader market," Lin said.

As the petrochemical index fell 4.06 percent, Formosa Plastics Corp. lost 5.99 percent to end at NT$44.75 and Nan Ya Plastics Corp. slid 5.87 percent to close at NT$73.80, but buying rotated to smaller-cap stocks with Taita Chemical Co. surging 10 percent to end at NT$19.90.

Elsewhere in the old economy sector, China Steel Corp., Taiwan's largest steel maker, fell 2.06 percent to close at NT$19.05, but Tung Ho Steel Corp. ended up 0.99 percent at NT$71.20.

In the financial sector, which fell 1.50 percent, Fubon Financial Holding Co. shed 2.03 percent to close at NT$86.80, while Cathay Financial Holding Co. appeared resilient, falling only 0.42 percent to end at NT$71.70 and Lin suspected government-led funds lent support to the stock.

"Judging from today's reduced turnover, many investors were reluctant to buy the lows as they just wanted to watch now to see whether Iran will follow Trump's request to reopen the Strait of Hormuz," Lin said.