Taiex under heavy pressure but late rebound caps fall

Taipei, July 14 (CNA) Shares in Taiwan came under pressure Tuesday, falling below 44,000 points at one point, before rebounding in the last 90 minutes of the session to cap the losses, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 642.57 points, or 1.42 percent, at 44,737.95 after moving between 43,654.04 and 45,364.40. Turnover totaled NT$1.18 trillion (US$36.63 billion).

"Like other markets in the region, the Taiwan market followed its counterparts in the United States to trend sharply lower in the morning, led by the electronics sector," Concord Securities analyst Kerry Huang said.

Huang was referring to a 1.55 percent fall in the tech-heavy Nasdaq index overnight amid escalating tensions in the Middle East.

"But, the tech-led Seoul market showed signs of recovering, prompting bargain hunters here to pick up electronics stocks," Huang said.

Among the tech stocks that rebounded late, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, fell 0.82 percent to close at NT$2,420.00, off a low of NT$2,390.00.

"More significantly, select memory chip suppliers appeared resilient and returned to positive territory after their South Korean counterparts bounced back," Huang said.

Nanya Technology Corp. rose 5.91 percent to close at NT$448.00 and Macronix International Co. gained 1.09 percent to end at NT$139.50.

Among others in the chip sector, United Microelectronics Corp. (UMC), a smaller contract chipmaker, lost 1.63 percent to end at NT$151.00, and smartphone IC designer MediaTek Inc. dropped 4.31 percent to close at NT$3,660.00.

Also in the electronics sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. dropped 0.42 percent to close at NT$233.50 and power management solution provider Delta Electronics Inc. ended down 1.85 percent at NT$1,855.00.

While most non-tech stocks were also in the doldrums, the petrochemical sector outperformed the market on a spike in international crude oil prices amid renewed unease in the Middle East, which could boost product prices, dealers said.

With the petrochemical index up 1.86 percent, Formosa Plastics Corp. rose 5.65 percent to close at NT$63.60 and Nan Ya Plastics Corp. gained 5.26 percent to end at NT$210.00.

Formosa Chemicals & Fibre Corp. added 3.08 percent to close at NT$67.00, and Formosa Petrochemical Corp. rose 4.91 percent to end at NT$66.20.

On the other hand, Shihlin Electric & Engineering Corp. shed 6.82 percent to close at NT$205.00, and Teco Electric & Machinery Co. lost 4.36 percent to end at NT$63.60.

In the financial sector, which fell 1.05 percent, Fubon Financial Holding Co. lost 1.57 percent to close at NT$125.00, and Cathay Financial Holding Co. dropped 0.62 percent to end at NT$96.10.

Huang urged investors to watch for the June consumer price index (CPI) data in the U.S. due out later Tuesday Taiwan time.

He said the data could offer hints on what the U.S. Federal Reserve may do on interest rates in the future.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$51.89 billion in shares on the market Tuesday.