Taiex edges lower ahead of 50,000-point mark

Taipei, Oct. 7 (CNA) Shares in Taiwan closed slightly lower Wednesday as large-cap tech stocks took a pause ahead of the 50,000-point mark, while the upcoming National Day holiday also kept investors from raising their positions, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 16.18 points, or 0.03 percent, at 49,806.37 after moving between 49,567.52 and 49,966.89. Turnover totaled NT$925.99 billion (US$29.12 billion).

"The 50,000-point mark continued to be a psychological level for many investors, so they tended to turn cautious, in particular after the Taiex staged a strong rally since June," Taishin Securities Investment Advisory analyst Tony Huang said.

Before Wednesday, the Taiex had soared 5,089.61 points, or 11.38 percent, since the beginning of June, led by large-cap tech stocks.

"Caution ahead of the upcoming holiday capped turnover, so heavyweights failed to make a takeoff to help the broader market jump over 50,000 points," Huang said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for more than 40 percent of total market value, closed unchanged at NT$2,585.00.

Smartphone IC designer MediaTek Inc. shed 1.73 percent to end at NT$4,835.00, while IC packaging and testing services provider ASE Technology Holding Co. dropped 1.61 percent to close at NT$732.00. However, United Microelectronics Corp., a smaller contract chipmaker, ended up 0.68 percent at NT$148.50.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. fell 1.56 percent to close at NT$252.00, while power management solution provider Delta Electronics Inc. lost 2.93 percent to end at NT$1,990.00.

However, bargain hunters shifted their attention to passive electronic component stocks, with Yageo Corp. rising 3.52 percent to close at NT$647.00 and Walsin Technology Corp. surging 10 percent, the maximum daily increase, to end at NT$428.00.

While major semiconductor stocks remained subdued, buying rotated into select old-economy stocks, with petrochemical and textile stocks in focus.

Formosa Plastics Corp. jumped 10 percent to close at NT$75.40, while Nan Ya Plastics Corp. gained 7.17 percent to end at NT$314.00. Formosa Chemicals & Fibre Corp. rose 3.84 percent to close at NT$75.80, and Formosa Petrochemical Corp. ended up 5.42 percent at NT$107.00.

Meanwhile, textile maker Far Eastern New Century Corp. gained 2.51 percent to close at NT$28.60, while Eclat Textile Co. rose 2.41 percent to end at NT$297.00.

The financial sector also outperformed the tech sector, rising 1.02 percent on rotational buying, dealers said.

Hua Nan Financial Holdings Co. rose 3.19 percent to close at NT$46.90, while KGI Financial Holding Co. gained 2.26 percent to end at NT$38.50. Mega Financial Holding Co. closed up 1.01 percent at NT$49.80.

"Although the local bourse's fundamentals remain sound, uncertainty created by U.S. monetary policy could affect its performance," Huang said. "I expect the Taiex will continue to consolidate in the short term."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$13.04 billion worth of shares on the main board Wednesday.