Taiwan stock market down 1.6% on exports, job market

Snadra Chuang, The China Post

The Taiwan stock market yesterday hit a 91-month low, falling 68.40 points, or 1.6 percent, to close at 4,151.93 while the daily turnover shrank from Friday’s NT$38.3 billion to NT$31.1 billion.

The index rose 28.02 points at the opening on hopes that the upcoming economic development advisory council will lead to effective results. However, market sentiment was later damped by the disappointing export order and unemployment figures for June. The decline snowballed as the session progressed toward the close.

“The index was pressured by the latest economic data. They acted to discourage investors from jumping into the market,” said a dealer.

Adding to negative factors was heavy selling pressure of Taiwan Semiconductor Manufacturing Co. (TSMC), which issued NT$5.1 billion new shares on Monday. “As the outlook for the industry remained uncertain, investors would rather stay on the sidelines or take their profit before the market fell deeper,” said the dealer.

TSMC fell 4.1 percent to close at NT$58, while its counterpart United Microelectronics Corp. ended flat at NT$35.3. Other technology shares generally moved downward as TSMC’s selling pressure spread to other sectors. Transportation shares, however, continued their gains on expectation that direct links across the Taiwan Strait will be launched, with China Airlines added 5.4 percent to close at NT$13.7 and Evergreen Marine rose 3.4 percent to stand at NT$12.1. Financial shares were also weak on a continued lack of confidence among investors in chasing prices.