TAIPEI: Shares in Taiwan closed lower Friday as investors felt the pinch of a plunge on Wall Street overnight amid rising fears over a quicker interest rate cycle in the U.S. market at a time of solid economic recovery, dealers said. The local main board recouped some of its earlier losses as bargain hunters became active from the late morning session to take advantage of stocks that had been hammered in recent sessions, the dealers said.
However, market sentiment was cautious throughout the session as investors remained concerned by possible volatility in the U.S. market after recent heavy losses, they added.
The weighted index on the Taiwan Stock Exchange (TWSE) ended down 156.77 points, or 1.49 percent, at 10,371.75, after moving between 10,189.04 and 10,392.31, on turnover of NT$150.89 billion (US$5.13 billion). For the week, the main board fell 754.48 points or 6.78 percent, in the wake of heavy losses in the U.S. market.
The market opened down 1.50 percent Friday and quickly moved to the day’s low as selling was sparked by a dive on Wall Street, where the Dow Jones Industrial Average lost 1,033 points, or 4.15 percent, overnight, the dealers said. It was the first time the Dow had dipped below the 24,000-point mark since late November in reflection of rate hike fears, the dealers said.
Selling on the local main board focused on large cap stocks across the board, with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) and other tech heavyweights leading the downturn during most of the morning session, they said.
After 11 a.m., bargain hunting emerged to prop up the broader market, with buying in select old economy stocks more visible, which helped the weighted index recover from an early low.
The weighted index, nevertheless, fell below the technical resistance level of the 240-day moving average of 10,395 points. Falling below 10,395 points has made the main board technically weaker, although the weighted index came off its low by the end of the session,” Hua Nan Securities analyst Kevin Su said. “It is unlikely that the local equity market will have a meaningful rebound unless Wall Street stabilizes. But there are no signs that Wall Street will soon turn stable.” Echoing Su, Ta Ching Securities analyst Andy Hsu said he suspected that Friday’s bargain hunting came from government-led funds “as the government did not want to see the weighted index fall even further amid the current global turmoil.”
Taiwan to spend NT$200 million and ramp up mask production to 10 million a day
TAIPEI: As the Wuhan coronavirus epidemic continues to escalate around the world, Taiwan Premier Su Tseng-chang (蘇貞昌) has decided to...