Taiwan shares end down ahead of futures settlement date

Taipei, Aug. 18 (CNA) Shares in Taiwan closed lower Tuesday as investors rushed to pocket recent gains amid fears over volatility on the settlement of August futures contracts, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 548.59 points, or 1.20 percent, at 45,308.68 after moving between 45,225.42 and 46,064.09. Turnover totaled NT$958.44 billion (US$30.10 billion).

"Foreign institutional investors held about 83,000 more short positions than long positions in August futures contracts, a relatively high level, indicating foreign investors' growing caution about the possibility of a major pullback after the recent strong upturn," Concord Capital Management analyst Lu Chin-wei said.

"It is believed that fears of volatility on tomorrow's settlement date prompted investors to trim their holdings today after the Taiex's initial gains with large cap tech stocks in focus," Lu said.

Among semiconductor stocks facing profit taking, smartphone IC designer MediaTek Inc. lost 4.07 percent to close at NT$3,885.00 and IC packaging and testing services provider ASE Technology Holding Co. dropped 2.60 percent to end at NT$599.00. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, appeared resilient, down only 0.83 percent to close at NT$2,380.00.

"TSMC saw the nearest technical support ahead of the 60-day moving average around NT$2,375.00. Otherwise, the Taiex would have fallen further," Lu said.

Also in the tech sector, power management solutions provider Delta Electronics Inc. shed 3.45 percent to close at NT$1,820.00 and iPhone assembler and AI server maker Hon Hai Precision Industry Co. fell 2.35 percent to end at NT$249.00.

Bucking the downturn, server rail supplier King Slide Works Co. rose 4.51 percent to close at NT$14,370.00, maintaining its position as the second most expensive stock in Taiwan.

"With tech stocks in the doldrums, investors tended to park their money in safe havens in the old economy and financial sectors, but their relatively low weighting failed to give a significant boost to the Taiex," Lu said.

Amid hopes that a universal NT$10,000 cash handout planned by the government will boost domestic spending, food brand Uni-President Enterprises Corp. rose 1.33 percent to close at NT$76.20 and cooking oil maker Great Wall Enterprise Co. ended up 1.92 percent at NT$53.00.

Shipping stocks extended their momentum from a session earlier on growing freight rates with Evergreen Marine Corp., Taiwan's largest container cargo shipper, rising 2.81 percent to close at NT$238.00. Rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. gained 2.74 percent and 5.42 percent, respectively, to end at NT$56.20 and NT$105.00.

China Airlines closed down 0.74 percent at NT$20.10, while EVA Airways ended up 0.24 percent at NT$41.90.

In the financial sector, which added 0.73 percent, Fubon Financial Holding Co. closed up 3.19 percent at NT$129.50, and Cathay Financial Holding Co. ended up 1.12 percent at NT$99.20.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.99 billion of shares on the main board Tuesday.