Taiex ends down but recoups some losses on tech, financial rebound

Taipei, Sept. 14 (CNA) Shares in Taiwan closed lower Monday but pared earlier losses as tech and financial stocks rebounded, though turnover shrank as capital was locked up by an initial public offering for semiconductor equipment testing firm Hermes Testing Solutions Inc., dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 322.33 points, or 0.70 percent, at 45,862.52 after moving between 45,398.43 and 46,050.24. Turnover totaled NT$630.92 billion (US$19.89 billion), compared with NT$762.25 billion Friday.

The main board came under heavier pressure in early morning trading after Anthropic head Dario Amodei called for a slower pace of AI development, saying the risks associated with the technology were "serious," with fellow AI heavyweights Sam Altman and Elon Musk agreeing with him, Moore Securities Investment Consulting analyst Adam Lin said.

"So, major AI-related stocks came under pressure initially before some bargain hunters turned active," Lin said, adding that the Taiex saw its nearest technical support at around 45,200 points.

"Moreover, large financial stocks also benefited from bargain hunting, helping the Taiex climb," Lin said. "Based on the recovery in these tech and financial stocks, I suspect government-led funds were behind the buying."

"But turnover fell as many investors deposited large funds to participate in subscriptions for Hermes's IPO," Lin said, referring to the Sept. 22 listing on the over-the-counter market and to its tentatively set underwriting price of NT$2,250.00, which would be a record IPO price in the local equity market.

Among semiconductor stocks that recovered from their lows, United Microelectronics Corp., the second-largest contract chipmaker in Taiwan, rose 1.42 percent to close at NT$142.50, while smartphone IC designer MediaTek Inc. ended down only 0.55 percent at NT$4,560.00.

However, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, closed at the day's low of NT$2,380.00, knocking about 240 points off the Taiex. TSMC's ASIC design unit Global Unichip Corp., however, ended up 4.58 percent at NT$6,400.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 0.20 percent to close at NT$248.50, while Yageo Corp., the world's third-largest multilayer ceramic capacitor supplier, ended up 0.18 percent at NT$545.00.

In the financial sector, which rose 1.94 percent, Fubon Financial Holding Co. gained 3.70 percent to close at NT$154.00, while Cathay Financial Holding Co. ended up 1.81 percent at NT$112.50.

"Without active bargain hunting, old economy stocks largely remained weak," Lin said.

Formosa Plastics Corp. lost 2.63 percent to close at NT$62.90, while Formosa Chemicals & Fiber Corp. shed 3.70 percent to end at NT$67.60.

Asia Cement Corp. dropped 0.85 percent to close at NT$35.00, while rival TCC Group Holdings Co. ended down 2.45 percent at NT$23.90.

"Market sentiment remained cautious ahead of a policymaking meeting of the U.S. Federal Reserve (scheduled for Tuesday-Wednesday U.S. time)," Lin said. "While the odds of a rate hike by the Fed have risen to 90 percent, investors still want to hear what Fed Chairman (Kevin) Warsh will say."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$36.96 billion worth of shares on the main board Monday.