Taiwan shares drift lower amid lack of direction

Taipei, Sept. 8 (CNA) Shares in Taiwan ended lower Tuesday after moving without a clear direction as U.S. markets were closed Monday for a public holiday, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 220.49 points, or 0.47 percent, at 47,105.78 after moving between 47,023.73 and 47,578.24. Turnover totaled NT$876.66 billion (US$27.80 billion), compared with NT$997.94 billion on Monday.

"The index initially posted gains but soon turned lower, moving in the absence of direction from U.S. markets, which were closed for the Labor Day holiday," Moore Securities Investment Consulting analyst Adam Lin said.

"Fortunately, TSMC (Taiwan Semiconductor Manufacturing Co.) still remained resilient and closed up, preventing the broader market from falling further," Lin said. "But, turnover shrank today, showing many investors preferred to stay on the sidelines for the moment."

Shares in contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 0.41 percent to close at NT$2,470.00, helping the Taiex trim about 80 points in losses.

Other major semiconductor stocks moved lower on profit-taking with smartphone IC designer MediaTek Inc. falling 1.05 percent to end at NT$4,710.00, and IC packaging and testing service provider ASE Technology Holding Co. dropping 0.48 percent to close at NT$618.00.

Memory chip suppliers continued to benefit from a global supply shortage as Nanya Technology Corp. and Winbond Electronics Corp. rose 2.71 percent and 4.44 percent, respectively, to end at NT$531.00 and NT$188.00.

Dealers said selling was heavier outside the semiconductor industry. iPhone assembler and AI server maker Hon Hai Precision Industry Co. lost 1.76 percent to close at NT$251.50 and Quanta Computer Inc., another AI server supplier, ended down 5.61 percent at NT$328.00.

Power management solution provider Delta Electronics Inc. lost 2.43 percent to close at NT$1,805.00, and passive electronic components maker Yageo Corp. ended down 3.74 percent at NT$567.00.

With the electronics industry in the doldrums, buying rotated to select non-tech stocks as safe havens, dealers said.

Food brand Uni-President Enterprises Corp. rose 1.99 percent to close at NT$76.70 and cooking oil supplier Great Wall Enterprise Co. ended up 0.77 percent at NT$52.50.

Nan Ya Plastics Corp. extended its upward momentum, rising 1.95 percent to close at NT$235.00 on subsidiary Nanya Technology's upturn, while Formosa Plastics Corp. fell 2.25 percent to end at NT$65.10.

In the financial sector, which rose 1.20 percent, E. Sun Financial Holding Co. gained 4.59 percent to close at NT$45.55, and TS Financial Holding Co. climbed 4.14 percent to end at NT$42.80. However, Fubon Financial Holding Co. closed down 0.33 percent at NT$149.00.

"With the Taiex moving closer to the historical intraday high of 48,218 (seen on June 23), the market could see more volatility, but technical support is possible around the five-day moving average of 46,462," Lin said.

Despite the fall in the Taiex, foreign institutional investors bought a net NT$13.27 billion of shares on the main board Tuesday, according to the Taiwan Stock Exchange.