Taiwan shares end flat as initial gains eroded

Taipei, July 13 (CNA) Shares in Taiwan closed little changed Monday with an initial significant upturn eroded as investors rushed to lock in earlier gains in the wake of losses on other regional markets, dealers said.

After surging 970 points to hit the day's high, the Taiex, the Taiwan Stock Exchange's benchmark index, ended up 25.91 points, or 0.06 percent, at 45,380.52. Turnover totaled NT$1.03 trillion (US$31.98 billion).

"The Seoul market reversed earlier gains and the Taipei market just followed suit," Cathay Futures Consultant analyst Tsai Ming-han said. "Fears are growing that the previous significant gains in share prices will lead to further volatility."

Before Monday's session, the Taiex had soared nearly 58 percent since the beginning of the year.

Profit-taking focused on semiconductor and electronic component stocks, Tsai said.

Shares in smartphone IC designer MediaTek Inc. lost 2.55 percent to close at NT$3,825.00 and IC packaging and testing firm ASE Technology Holding Co. dropped 1.03 percent to end at NT$670.00.

Memory chip suppliers Nanya Technology Corp. lost 2.87 percent to close at NT$423.00, and Winbond Electronics Corp. ended down 5.38 percent at NT$167.00.

Yageo Corp., the world's third-largest multilayer ceramic capacitor (MLCC) maker, shed 9.33 percent to close at NT$816.00, and copper clad laminate producer Elite Material Co. lost 3.21 percent to end at NT$5,125.00.

"The silver lining was that TSMC (Taiwan Semiconductor Manufacturing Co.) appeared resilient and posted gains to lend support to the broader market," Tsai said. "The stock had lagged behind the Taiex for some time in consolidation mode after encountering profit taking."

"Investors also expect the company to deliver positive leads from its Thursday investor conference," he said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 1.04 percent to close at NT$2,440.00. Its gains prevented the Taiex from falling an additional 200 points.

Old economy stocks largely ended mixed but "the four entities under the conglomerate Formosa Plastics Corp. attracted strong buying after their solid second quarter results," Tsai said.

During the April-June period, the accumulated net profit of the four entities stood at NT$64.28 billion, up 45.50 percent from a quarter earlier. Formosa Plastics Corp. and Nan Ya Plastics Corp. soared 10 percent, the maximum daily increase, to end at NT$60.20 and NT$199.50, respectively.

Formosa Chemicals & Fibre Corp. rose 8.33 percent to close at NT$65.00, and Formosa Petrochemical Corp. ended up 7.31 percent at NT$63.10.

Food brand Uni-President Enterprises Corp. added 0.13 percent to close at NT$78.50, but cooking oil supplier Taisun Enterprise Co. ended down 3.86 percent at NT$16.20.

In the financial sector, CTBC Financial Holding Co. fell 1.34 percent to close at NT$66.50, but Fubon Financial Holding Co. rose 2.10 percent at NT$127.00.

In addition to TSMC's results, "the U.S. will kick off an earnings season this week, which is worth watching," Tsai said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$19.58 billion of shares on the main board Monday.