Taiwan stocks end lower after abandoning initial gains
Taipei, July 21 (CNA) Shares in Taiwan closed on Wednesday as investors turned to sell to take advantage of the initial rally resulting from a significant rebound in U.S. markets overnight, brokers said.
Investors rushed to lock in their built-in earnings for some old economy stocks early in the session, while the semiconductor industry appeared resilient and even saw late-session buys that held the market down. broad sense to drop further by the end of the session, they said.
The Taiex, the weighted index of the Taiwan Stock Exchange (TWSE), ended down 69.95 points, or 0.4%, to 17,458.79, after moving between 17,352.24 and 17,707, 56. Sales totaled NT $ 613.14 billion (US $ 21.84 billion).
The market opened 0.37% and quickly hit its highest level of the day with buying triggered by the 1.62% rebound triggered by the Dow Jones Industrial Average overnight in response to rising Treasury yields America, which allayed concerns about the economic recovery, dealers said.
The sale emerged as the Taiex briefly broke 17,700 points with a focus on shipping and steel inventory, while contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) attracted buys. at the end of the session to support the semiconductor industry as well as the market at large, added the resellers.
âMaritime stocks remained volatile for most of the trading session, with large companies even falling 10%, the maximum daily decline, at one point,â said Lu Wei-chin, analyst at Hua Nan Securities . “Many investors simply pocketed their earlier gains, leaving the US recovery behind.”
The transportation sector, where large-cap maritime stocks are traded, fell 7.64% to close at 291.46 after hitting a high of 334.23.
âThe silver lining is that these major marine stocks have managed to come out of their lows. I think the downward pressure they are facing has been gradually digested,â Lu said. âAs the global demand for services from Ocean freight remains strong, it is possible that their stock price will stabilize soon but enter consolidation mode. “
In the sector, shares of Evergreen Marine Corp., Taiwan’s largest container shipper, fell 8.55% to close at NT $ 155.00, from a low of NT $ 153.00, and its rival Wan Hai Lines Ltd. fell 8.45% to end at NT $ 238.50. , on a minimum of NT $ 234.50. In addition, Yang Ming Marine Transport Corp. fell 10% to close at NT $ 153.50.
Among the bulk shippers, U-Ming Marine Transport Corp. lost 4.27% to close at NT $ 65.00, and TZE Shin International Co. lost 4.23% to close at NT $ 30.55.
Lu said the steel sector was also targeted by profit taking, down 2.95% with China Steel Corp., Taiwan’s largest steel producer, down 2.64% to close at NT $ 35.10, and Chung Hung Steel Corp. down 4.27% to close at NT $ 49.30.
Elsewhere in the old economy sector, Formosa Plastics Corp. fell 1.48% to close at NT $ 100.00, and Taita Chemical Co. fell 2.15% to close at NT $ 43.25, while food brand Uni-President Enterprises Corp. rose 0.28% to end at NT $ 72.70.
âTSMC, once again, served as an anchor for the broader market as bargain hunters recovered the shares at the end of the session,â Lu said. âAfter a recent slump, the stock appeared attractive as its fundamentals remain strong due to the effects of the peak season in the third quarter despite disappointing second quarter results. “
After falling 5.37% in the previous three sessions in response to a sequential 3.8% drop in second-quarter profits, TSMC, the most weighted stock in the local market, rose 0. 69% to close at NT $ 585.00, from an NT low. $ 580.00.
Led by TSMC, the electronics sector rose 0.08%, with the semiconductor sub-index rising 0.43%.
Among other semiconductor stocks, United Microelectronics Corp., a smaller contract chipmaker, fell 3.05% to close at NT $ 50.80, but the packaging and testing service provider of integrated circuits ASE Technology Holding Co. rose 1.27% to close at NT $ 119.50.
âSeveral US tech giants, including Apple Inc., will release their earnings later this month, which could shake up US markets and in turn influence the strategies of foreign institutional investors in the local market,â said Read.
According to the TWSE, foreign institutional investors on Wednesday sold NT $ 16.23 billion in shares to the main board.