Taiwan shares tumble on crude oil price spike

Taipei, March 30 (CNA) Shares in Taiwan moved sharply lower Monday as a spike in crude oil prices led investors to trim their holdings of large-cap stocks, particularly those in the electronics sector, analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 594.43 points, or 1.80 percent, at 32,518.16 after hitting a low of 32,326.37. Turnover totaled NT$646.62 billion (US$20.04 billion).

"Rising crude prices caused by the conflict in the Middle East have raised concerns over inflation, hurting market sentiment around the world," Concord Securities analyst Kerry Huang said, citing heavy losses in the United States on Friday and in Asia on Monday.

On Monday, Brent crude oil prices, the global benchmark, rose to above US$116 per barrel at one point after Yemen's Houthis fired missiles at Israel a day earlier.

"Investors in Taiwan kept cutting their holdings in liquid large cap tech stocks today, with TSMC [Taiwan Semiconductor Manufacturing Co.] in focus," Huang said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, lost 2.20 percent to close at the day's low of NT$1,780.00. The stock's losses alone contributed about 320 points to the Taiex's fall.

Smartphone IC designer MediaTek Inc. shed 4.73 percent to end at NT$1,510.00, while IC packaging and testing service provider ASE Technology Holding Co. appeared resilient, closing unchanged at NT$353.50.

Select memory chip suppliers outperformed the Taiex on a global supply shortage, with Macronix International Co. rising 2.40 percent to end at NT$128.00.

AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 2.76 percent to end at NT$194.00, and Quanta Computer Inc., another AI server supplier, closed 2.77 percent lower at NT$281.00.

"The old economy sector largely came under pressure amid fears that inflation will hurt consumption," Huang said.

Among companies in this category, Shihlin Electric & Engineering Corp. lost 2.38 percent to close at NT$184.50 and Fortune Electric Co. fell 3.58 percent to end at NT$834.00.

Eclat Textile Co. dropped 2.77 percent to close at NT$334.00, and rival Makalot Industrial Corp. shed 4.66 percent to end at NT$235.00.

Higher oil prices, however, cut both ways, lifting the petrochemical index by 2.67 percent. Formosa Plastics Corp. rose 2.88 percent to close at NT$48.25, and Nan Ya Plastics Corp. surged 9.70 percent to end at NT$81.40.

In the financial sector, which lost 1.36 percent, Fubon Financial Holding Co. fell 1.48 percent to close at NT$86.40 and CTBC Financial Holding Co. ended down 2.08 percent at NT$51.90.

"Judging from today's movement, I think the Taiex has short-term technical support ahead of 32,124 points, the 60-day moving average," Huang said. "Investors should be cautious, however, and hold more cash for now."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$63.94 billion in shares on the market Monday.