《TAIPEI TIMES》 TAIEX falls on trade, economic concerns
A man looks at a stock exchange board in Taipei yesterday. Photo: CNA
By Crystal Hsu / Staff reporter
The TAIEX yesterday slumped 3.26 percent, or 416 points, to 12,362.64 on a record turnover of NT$346.816 billion (US$11.75 billion) as worsening US-China trade tensions and a dimmer global economic outlook triggered a sell-off reminiscent of the global stock market crash in March.
Big technology names led the tumble, prompting Deputy Minister of Finance Frank Juan (阮清華), also the executive secretary of the National Stabilization Fund, to call for calm, saying the nation’s economic fundamentals remain sound and the fund of NT$500 billion could lend support if necessary.
Shares of chip designer MediaTek Inc (聯發科), gallium arsenide wafer foundry Win Semiconductors Corp (穩懋半導體), driver IC supplier Novatek Microelectronics Corp (聯詠科技) and passive components supplier Yageo Corp (國巨) took a hard hit on media reports that China’s Huawei Technologies Co (華為) is slowing deployment of 5G products.
The reports came after Washington expanded trade restrictions that limit the Chinese company from obtaining foreign-made chips developed or produced using US software or technology, dashing hopes that Taiwanese suppliers could benefit from transfer orders.
Juan painted the stock rout as normal pullbacks after the TAIEX approached the 13,000-point peak.
“It is normal for the TAIEX to encounter technical corrections after rallying to record highs,” Juan said, adding that healthy corporate earnings and exports would lend support to local shares.
As of last month, revenues from listed companies totaled NT$8.79 trillion, falling by just 2.4 percent from the same time last year, suggesting resiliency despite the COVID-19 pandemic, Juan said.
Exports last month returned to positive territory ahead of the high season for technology products, he added.
Turnover soared as foreign institutional players cut holdings by a net NT$14.67 billion, while mutual funds oversold NT$1.69 billion and proprietary traders offloaded a net NT$2.89 billion, according to Taiwan Stock Exchange data.
Foreign brokerages have revised down target prices for local tech plays to reflect the lack of revenue contributions from Huawei from next quarter.
Taiwan Semiconductor Manufacturing Co (台積電) and Win Semiconductors earlier indicated they would stop shipments to Huawei after Sept. 14.
MediaTek has dismissed allegations that it would help reroute chips on behalf of the Chinese technology titan.
State-run banking institutions raised stakes in Huawei’s local suppliers by a total of NT$7.6 billion in the past four sessions, stock exchange tallies showed.
新聞來源:TAIPEI TIMES
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