Taiwan stock market down on economy, profit fears

Sandra Chuang, The China Post

Taiwan stock market today fell sharply by 110.47 points, or 2.1 percent, to close at 5,122.17 while the daily turnover shrank to this year’s new low of NT$40.4 billion.

The market slipped 17.09 points at the opening and headed further down as investors continued to take profits on yesterday’s gains in the absence of fresh leads. Disappointing economic performance and profit warnings pushed the market down further until the market closed. Technology shares were the worst performers mainly due to the overnight plunge in Nasdaq and the weaker-than-expected sales reports released by two computer-chip giants Taiwan Semiconductor Manufacturing Corp. (TSMC) and United Microelectronics Corp. (UMC) yesterday. TSMC shed 2.6 percent to close at NT$92.5 while UMC dropped 1.9 percent to stand at NT$51.5. Financial shares generally moved downward as banks continued to face the growing bad loans.

Traditional industry shares also dropped due to the weak market confidence and a lack of positive buying incentives. The Taiwan Stock Exchange (TSE) estimated that more than 60 shares have dropped to their historic lows in May.