Taiex's gains eroded on geopolitical caution despite Trump's move

Taipei, March 24 (CNA) Shares in Taiwan gave up all initial gains as investors rushed to take profits, ignoring a move made by U.S. President Donald Trump overnight to postpone strikes on Iran's power plants, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 110.26 points, or 0.34 percent, at 32,612.24 after hitting a high of 33,361.46, up over 600 points in the early morning session. Turnover totaled NT$664.35 billion (US$20.53 billion).

"Investors remained haunted by military conflicts in the Middle East despite Trump's decision to delay strikes on Iranian power plants," Hua Nan Securities analyst Kevin Su said.

While Trump said further U.S. strikes were pending the outcome of talks with Iran, Tehran said it has held no discussions with Washington, rejecting the claim that both sides have made significant progress in talks.

"It is understandable that when the index rebounded, investors tended to take money and run to avoid possible losses down the road," Su said. "Large-cap stocks fell victim to such worries to push down the Taiex below 33,000 points again."

Among the market heavyweights, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, came off a high of NT$1,850.00 to close unchanged at NT$1,810.00. TSMC's fall from the day's high cost the Taiex about 320 points.

AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 0.51 percent to end at NT$195.00, smartphone IC designer MediaTek Inc. fell 0.31 percent to end at NT$1,620.00. Power management solution provider Delta Electronics Inc. ended up 0.35 percent at NT$1,415.00.

PC brand Asustek Computer Inc., which forecast PC prices in Taiwan will grow 25 percent to 30 percent in the second quarter, closed up 0.36 percent at NT$565.00, and rival Acer Inc. ended up 0.56 percent at NT$27.15.

"Profit-taking was also seen among nontech stocks amid fears that a spike in crude oil prices would boost inflation and hurt demand," Su said.

Eclat Textile Co. lost 2.11 percent to close at NT$348.00 and Shinkong Synthetic Fibers Corp. ended down 0.32 percent at NT$15.80.

Nan Ya Plastics Corp. shed 2.03 percent to close at NT$72.30 as memory chip subsidiary Nanya Technology Corp. lost 2.91 percent to end at NT$216.50. Formosa Plastics Corp. dropped 0.23 percent to close at NT$43.00.

In the financial sector, which rose 0.73 percent as Su suspected government support was behind the gains, Mega Financial Holding Co. gained 1.30 percent to end at NT$38.85, and E. Sun Financial Holding Co. added 1.28 percent to close at NT$31.55. Cathay Financial Holding Co. ended down 1.26 percent at NT$70.80.

"Investors had better raise their cash positions for now, waiting for opportunities to buy," Su said.

According to the TWSE, foreign institutional investors sold a net NT$12.19 billion of shares on the main board on Tuesday.