Taiex plunges 960 points as tech stocks hit by heavy U.S. losses

Taipei, Oct. 13 (CNA) Shares in Taiwan tumbled nearly 961 points Tuesday, tracking an overnight sell-off in U.S. technology stocks after a Houthi attack on a Saudi Arabian airport sent crude oil prices soaring, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 960.65 points, or 1.95 percent, at 48,341.31 after moving between 48,066.36 and 49,126.27. Turnover totaled NT$1.13 trillion (US$35.20 billion), compared with NT$894.52 billion Monday.

"The initial losses came after heavy losses among U.S. semiconductor stocks overnight after attacks on a Saudi airport, sending oil prices higher," Moore Securities Investment Consulting analyst Adam Lin said, referring to the Philadelphia Semiconductor Index's 2.67 percent decline.

"Selling intensified as investors were stunned by falling technology stocks in Seoul this morning amid speculation about several developments, including a delay in shipments of Nvidia's Vera Rubin platform," Lin said. "The expanded turnover showed that investors appeared to be panicking and scrambling to trim their positions."

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, shed 1.97 percent to close at NT$2,490.00, contributing about 400 points to the Taiex's decline.

Memory chip supplier Nanya Technology Corp. slid 7.40 percent to end at NT$488.00, tracking heavy losses by South Korean counterparts Samsung Electronics Co. and SK Hynix Inc.

Smartphone IC designer MediaTek Inc. lost 2.16 percent to close at NT$4,525.00, while application specific integrated circuit (ASIC) designer Alchip Technologies Ltd. shed 7.74 percent to end at NT$4,055.00.

Elsewhere in the electronics sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. lost 1.84 percent to close at NT$240.00, while Quanta Computer Inc., another AI server producer, edged up 0.31 percent to NT$323.00.

"Despite the heavy losses in technology stocks, the Taiex still saw active rotational buying," Lin said. "Petrochemical stocks were the beneficiaries, following the improved earnings of major companies in the Formosa Plastics Group."

Formosa Petrochemical Corp. rose 10 percent, the maximum daily increase, to close at NT$77.80, while Nan Ya Plastics Corp. gained 5.28 percent to end at NT$319.00. Formosa Chemicals and Fibre Corp. closed up 1.30 percent at NT$77.80.

However, Shihlin Electric & Engineering Corp. fell 2.70 percent to end at NT$198.50, while Fortune Electric Co. plunged 8.43 percent to close at NT$663.00.

The financial sector rose 1.13 percent on rotational buying, providing some support to the Taiex, Lin said.

CTBC Financial Holding Co. rose 2.02 percent to end at NT$71.60, while Mega Financial Holding Co. closed up 1.80 percent at NT$50.90 and Cathay Financial Holding Co. ended up 1.33 percent at NT$114.50.

"Tuesday's trading showed that the Taiex had strong technical support at around 48,000 points, but any rebound will depend on U.S. market performance," Lin said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$165.34 billion in shares on the main board Tuesday, the third-largest net sell-off on record.