Taiwan shares end down in reduced turnover

Taipei, Aug. 24 (CNA) Shares in Taiwan closed lower Monday, reversing earlier gains as concerns about a possible major pullback following recent strong gains prompted many investors to stay on the sidelines, sending turnover lower, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 461.97 points, or 1.02 percent, at 44,762.32 after moving between 44,761.88 and 45,362.30. Turnover totaled NT$629.43 billion (US$19.79 billion), compared with NT$754.90 billion on Friday.

Since the latest technical rebound at the end of July, the Taiex had soared 5,290.99 points, or over 13 percent, before Monday.

"So, as the main board posted gains in early trading, profit-taking simply followed," Taishin Securities Investment Advisory analyst Tony Huang said. "Amid such caution, many investors preferred to stay on the sidelines, resulting in lower turnover."

"Selling focused on large-cap tech stocks after the Taiex breached 46,000 points and moved closer to the next stiff technical resistance range between 46,000 and 48,000," Huang said.

With the bellwether electronics index down 0.99 percent, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the local market's total value, fell 1.45 percent to NT$2,375.00.

The stock's fall from the day's high cost the Taiex about 280 points.

Among other semiconductor stocks that reversed earlier gains, memory chip supplier Nanya Technology Corp. shed 5.11 percent to end at NT$501.00, and smartphone IC designer MediaTek Inc. lost 0.66 percent to NT$3,765.00.

However, IC packaging and testing services provider ASE Technology Holding Co. ended up 0.85 percent at NT$592.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. dropped 0.81 percent to close at NT$243.50, but power management solution provider Delta Electronics Inc. ended up 1.09 percent at NT$325.00.

Nontechnology stocks largely moved in line with the broader market, dealers said.

Taking cues from the heavy losses suffered by its subsidiary Nanya Technology, Nan Ya Plastics Corp. lost 6.25 percent to close at NT$180.00, while affiliate Formosa Plastics Corp. also slid 4.04 percent to end at NT$59.00.

China Motor Corp. fell 1.45 percent to close at NT$54.30, and Yulon Nissan Motor Corp. dropped 0.10 percent to NT$49.00.

Bucking the downturn, China Airlines rose 0.49 percent to close at NT$20.50, and EVA Airways ended up 0.12 percent at NT$42.65 amid optimism over demand during the summer vacation period.

In the financial sector, which fell 1.35 percent, Fubon Financial Holding Co. lost 1.49 percent to close at NT$132.00, and Cathay Financial Holding Co. ended down 1.59 percent at NT$98.90. However, E. Sun Financial Holding Co. closed up 0.39 percent at NT$38.15.

"In addition to concerns over technical hurdles, investors should also closely watch the upcoming Nvidia Corp. earnings report (due Wednesday U.S. time) for more data on the AI outlook," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$15.75 billion of shares on the main board Monday.