Taiwan shares enter technical correction, losing 0.55%


CNA

TAIPEI, Taiwan — Taiwan shares closed 0.55 percent lower Wednesday on a mild technical correction from the previous session, with Asian stocks mixed following Wall Street’s tech-driven rise overnight, dealers said.

The Taiwan Stock Exchange’s main index opened up 14.65 points on Wednesday at 10,142.8, with U.S. technology shares rebounding after a two-day decline.

However, the market lost early gains and slid into negative territory about an hour later, at one point falling below the monthly moving average of 10,100, as selling emerged amid caution ahead of a quarterly policymaking meeting scheduled by the U.S. Federal Reserve for Tuesday and Wednesday, dealers said.

The main index closed down 55.69 points, or 0.55 percent, at 10,072.46, before moving between 10,033.25 and 10,165.31, on turnover of NT$96.95 billion (US$3.2 billion).

Almost all major share categories lost ground, except for paper and pulp issues which closed 0.32 percent higher.

Analysts said that as the main index has remained above the 10,000-point mark, investors have become more cautious, with turnover in the past few sessions ranging from NT$80-100 billion.

The market is expected to hover around the 10,000-point mark as foreign investors move funds out of the country, putting pressure on the local market amid investor caution over the upcoming Fed policymaking meeting, analysts added.

Foreign institutional investors sold a net NT$2.098 billion-worth of shares on the main board on Wednesday, according to the Taiwan Stock Exchange (TWSE).