Taiex ends down as earlier gains eroded amid Middle East concerns

Taipei, July 9 (CNA) Shares in Taiwan closed lower Thursday after an earlier upturn was reversed when market sentiment became spooked by renewed geopolitical concerns as the United States and Iran launched fresh attacks, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 379.80 points, or 0.83 percent, at 45,354.61 after moving between 45,352.41 and 46,064.06. Turnover totaled NT$944.34 billion (US$29.39 billion).

"The renewed geopolitical unease sent international crude oil prices higher, which raised worries over inflation," Hua Nan Securities analyst Kevin Su said. "The minutes of the last U.S. Federal Reserve pointing to a hawkish attitude also hurt investors' mood."

"That was why investors scrambled to lock in their earlier gains, in particular in the late session," he said.

Selling focused on select large-cap liquid tech stocks as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) faced heavier pressure, pushing down the Taiex, Su added.

TSMC, which accounts for over 40 percent of the total market, lost 2.03 percent to close at NT$2,415.00, sending the electronics index and semiconductor index 0.75 percent and 1.11 percent lower, respectively.

Smartphone IC designer MediaTek Inc. shed 1.75 percent to end at NT$3,925.00, while power management solution provider Delta Electronics Inc. closed down 0.27 percent at NT$1,880.00.

Memory chip suppliers bucked the downturn as investors saw a rebound in South Korea, Su said. Among them, Nanya Technology Corp. soared 10 percent to close at NT$433.50, and rival Winbond Electronics Corp. gained 4.75 percent to end at NT$176.50.

In addition, shares in iPhone assembler and AI server maker Hon Hai Precision Industry Co. closed unchanged at NT$237.50, while Yageo Corp., the world's third-largest multi-layer ceramic capacitor (MLCC) maker, rose 1.01 percent to end at NT$900.00.

The financial sector suffered heavy losses throughout the session to add pressure on the Taiex. "A spike in U.S. Treasury yields amid Middle East tensions sent bond prices lower, which could compromise returns of financial firms' overseas investments," Su added.

With the financial index down 1.26 percent, Fubon Financial Holding Co. lost 1.19 percent to close at NT$124.50, and Cathay Financial Holding Co. ended down 1.73 percent at NT$96.30.

Old economy stocks also came under pressure with the petrochemical sector falling 2.31 percent. Formosa Plastics Corp. fell 5.52 percent to close at NT$54.80 and Formosa Chemicals & Fiber Corp. lost 7.26 percent to end at NT$60.00. Nan Ya Plastics Corp. appeared resilient, down only 0.27 percent to close at NT$181.50 as its memory chip subsidiary Nanya Technology posted significant gains.

"Investors had better keep a close eye on June sales reports due by Friday to pick up stocks with sound fundamentals," Su said. "I expect TSMC will report strong sales for June during the AI boom."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$47.13 billion of shares on the main board Thursday.