TAIPEI (CNA) — Shares in Taiwan closed lower on Jan. 23, dragged down by three of Apple’s major Taiwanese suppliers after U.S. technology stocks took a beating overnight.
The weighted index on the Taiwan Stock Exchange (TWSE), the Taiex, ended down 48.26 points, or 0.49 percent, at 9,846.40 after moving between 9,828.03 and 9,873.39. Turnover was an anemic NT$65.25 billion (US$2.11 billion).
The Taiex finished below its one-week moving average of 9,851 after the Dow Jones Industrial Average fell 1.2 percent overnight, as major technology shares such as Google, Intel, AMD and Apple all lost more than 2 percent.
Among the falling Apple suppliers, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, fell 1.12 percent to close at NT$220.50.
IPhone assembler Hon Hai Precision Industry Co. closed 1.41 percent lower at NT$69.70, and Largan Precision Co., a supplier of smartphone camera lenses to Apple, fell 1.07 percent to end at NT$3,710.00.
The sub-index for the bell whether electronics sector as a whole fell 0.52 percent.
Old-economy stocks were hurt by the International Monetary Fund’s downward revision of its global growth forecast Tuesday, which raised fresh concerns about faltering demand for fuel and petrochemical products.
Formosa Plastics Corp. lost 1.94 percent to end at NT$101.00, and Nan Ya Plastics Corp. dropped 2.36 percent to end at NT$74.60.
With only five trading sessions left before Taiwan’s stock exchange closes for 11 days for the Lunar New Year holiday, the Taiex is expected to hover around the quarterly moving average of 9,760, an analyst said.
According to TWSE data, foreign institutional investors bought a net NT$852 million in shares on the exchange Wednesday.
By Jiang Ming-yan and Evelyn Kao