TAIPEI (CNA) — Shares of Taiwanese firms in the Apple Inc. supply chain came under heavy pressure Monday, after the American company gave no second-quarter guidance at its investor conference last week due to uncertainty caused by the COVID-19 pandemic, dealers said.
In particular, large-cap “Apple concept stocks” suffered huge losses, which led the broader market into a fall of 270 points by the end of the session, dealers said.
The Apple suppliers faced stiff pressure soon after the market opened and the weakness continued until the end of the session, as investors returning to the trading floor after the three-day Labor day weekend were wary of Apple’s decision last Thursday not to give a second-quarter forecast.
Among the large-cap Apple concept stocks, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which supplies processors for the iPhone, closed down 1.88 percent at NT$295.00 (US$9.9).
Meanwhile, iPhone assembler Hon Hai Precision Industry Co. dropped 3.25 percent to end at NT$74.50, and Largan Precision Co., a smartphone camera lenses supplier, shed 5.72 percent to close at NT$3,875.00.
Bucking the downturn, Catcher Technology Co., which makes metal casings for Apple products, rose 1.32 percent to end at NT$231.00.
The weighted index on the Taiwan Stock Exchange (Taiex) ended down 2.47 percent at 10,720.48 on turnover of NT$189.62 billion.
“The current earnings season in the United States continued to dictate investor sentiment in Taiwan,” Hua Nan Securities analyst Lu Chin-wei said. “It was no surprise that Apple’s investor conference was one of the major leads for the Taiwanese suppliers.”
According to market estimates, Taiwanese companies in the Apple supply chain account for about 40 percent of the Taiex market capitalization.
At last week’s investor conference, Apple reported first-quarter sales of US$58.3 billion, up 1 percent from a year earlier but below its estimated US$63 billion to US$67 billion.
Its earnings per share stood at US$2.55, up almost 4 percent from a year earlier, it reported.