Taiwan shares end lower but fall limited as tech stocks rally late

Taipei, Oct. 19 (CNA) Shares in Taiwan closed lower on Monday, but their losses were limited after investors stepped in late to buy major technology stocks, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 289.18 points, or 0.61 percent, at 46,822.08 after moving between 46,170.00 and 46,844.64. Turnover totaled NT$825.10 billion (US$25.43 billion).

The index plunged more than 940 points in early trading, dragged down by chip stocks, after the Philadelphia Semiconductor Index fell 3.83 percent on Friday, dealers said.

"Fortunately, as the Taiex approached its 60-day moving average of 46,089 points, bargain hunters became active," Concord Securities analyst Kerry Huang said.

"Buying picked up as investors here saw the Seoul market rebound, with memory chipmakers Samsung Electronics Co. and SK Hynix Inc. recovering from their earlier losses."

In the electronics sector, which fell just 0.41 percent after recovering some of its earlier losses, TSMC, which accounts for more than 40 percent of the market's total capitalization, ended unchanged at NT$2,420.00.

"Judging from TSMC's rebound, I suspect government-backed funds stood on the buy side. Buying TSMC is the most effective way to push up the Taiex," Huang said.

Some memory chipmakers also recovered from their intraday lows, although Nanya Technology Corp. fell 2.57 percent to close at NT$436.00 and Winbond Electronics Corp. lost 3.72 percent to end at NT$155.50.

Smartphone chip designer MediaTek Inc. shed 1.06 percent to close at NT$4,205.00, while Global Unichip Corp., TSMC's application-specific integrated circuit (ASIC) design subsidiary, bucked the broader downturn, rising 4.68 percent to NT$7,830.00.

Elsewhere in the electronics sector, Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, fell 1.84 percent to close at NT$239.50, while power-management solutions provider Delta Electronics Inc. gained 0.31 percent to end at NT$1,640.00.

While non-technology industries largely remained sluggish, selected glass fiber cloth makers attracted buying interest amid strong demand for materials used in printed circuit boards.

Fulltech Fiber Glass Corp. surged 10 percent to close at NT$154.00, while Baotek Industrial Materials Ltd., listed on the over-the-counter market, ended up 4.84 percent at NT$97.50.

Elsewhere, Formosa Plastics Corp. fell 4.75 percent to close at NT$78.20, while Nan Ya Plastics Corp. lost 1.14 percent to end at NT$303.50.

In the financial sector, Fubon Financial Holding Co. dropped 1.86 percent to close at NT$158.50, and Cathay Financial Holding Co. declined 1.29 percent to end at NT$114.50.

"How the Taiex performs will hinge on the U.S. markets," Huang said. "One thing worth watching is whether U.S. Treasury yields stabilize, as they are a critical factor in AI companies' fundraising costs."

According to the Taiwan Stock Exchange, foreign institutional investors were net sellers of NT$76.74 billion in shares on the market Monday.