Taiex records 3rd heaviest point fall but come off low

Taipei, June 8 (CNA) Shares in Taiwan recorded their third heaviest point decline in history Monday after a plunge in the United States on Friday amid renewed fears over the Federal Reserve turning hawkish, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 1,568.16 points, or 3.48 percent, at 43,502.78 after moving between 42,376.86 and 44,507.49. Turnover totaled NT$1.13 trillion (US$35.51 billion).

Monday's fall in the Taiex was the third steepest on record, after a fall of 2,065.87 on April 7, 2025, and 1,807.21 on Aug. 5, 2024.

"The initial losses largely reflected the U.S. tumble Friday after the much stronger May job data," Hua Nan Securities analyst Kevin Su said, referring to the latest U.S. nonfarm payroll data in which 172,000 jobs were created, double a market estimate.

That data "will put the Fed in a tough spot on rate cuts and could even lead to a rate hike later this year," Su said.

After the Taiex dipped below the 20-day moving average of 43,116, however, bargain hunters emerged, picking up tech heavyweights, including Taiwan Semiconductor Manufacturing Co. (TSMC), helping the index offset some of its earlier losses, Su said.

"Judging from the movement of these heavyweights, I suspect government-led funds were behind the buying to bolster market confidence," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$93.85 billion of shares Monday, while local investment trust firms bought a net NT$9.07 billion.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, lost 2.96 percent to close at NT$2,295.00, off a low of NT$2,230.00. TSMC's recovery from its day's low helped the Taiex cut 520 points in losses.

Among other large cap tech stocks, smartphone IC designer MediaTek Inc. fell 5.35 percent to end at NT$4,070.00, and iPhone assembler and AI server maker Hon Hai Precision Industry Co. dropped 5.27 percent to close at NT$269.50.

Power management solution supplier Delta Electronics Inc. ended down 1.96 percent at NT$2,255.00.

Su said financial stocks were also government-led funds' favorites, lending additional support to the broader market.

Slightly outperforming the Taiex, Fubon Financial Holding Co. lost 1.69 percent to close at NT$116.00 and E. Sun Financial Holding Co. dropped 1.35 percent to end at NT$32.90. Cathay Financial Holding Co. suffered heavier losses, down 5.00 percent to close at NT$95.00.

Old economy stocks largely moved lower in line with the Taiex, with Formosa Plastics Corp. falling 6.24 percent to end at NT$45.85, and Nan Ya Plastics Corp. shedding 6.70 percent to close at NT$97.50.

The food sector appeared resilient on strong summer time consumption. Wei Chuan Foods Corp. lost 1.20 percent to close at NT$12.30, and rival Uni-President Enterprises Corp. fell 1.22 percent to end at NT$72.90.

Listed companies will have to report May sales by Wednesday, and, "the market is expecting heavyweights like TSMC to report strong revenue to support the Taiex," Su said.