Taipei, March 14 (CNA) Shares in Taiwan closed little changed Friday after moving in consolidation mode as an escalation of the tariff war triggered by the Trump administration continued to roil market sentiment, dealers said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 6.37 points, or 0.03 percent, at 21,968.05, after moving between 21,895.90 and 22,074.03. Turnover totaled NT$334.36 billion (US$10.14 billion), compared with NT$378.66 billion Tuesday.
“Many local investors stayed alert over the on-going tariff war and were reluctant to jump into the market for the moment, keeping turnover low,” Hua Nan Securities analyst Kevin Su said, referring to retaliation from Canada and the European Union against the United States.
Compared with a 1.30 percent fall on the Dow Jones Industrial Average and a 1.96 percent decline on the tech-heavy Nasdaq index overnight amid tariff worries, the Taiex appeared more resilient, Su said.
“Stock futures in the United States are moving higher now. Investors are just betting on a technical rebound on U.S. markets later in the day,” Su said. “Still, many large-cap local electronics stocks remained in the doldrums.”
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in Taiwan, lost 0.62 percent to close at NT$956.00 after last-ditch selling dragged the stock into negative territory. However, United Microelectronics Corp., a smaller contract chipmaker, rose 2.75 percent to end at NT$44.90 after its relatively low valuation attracted bargain hunters.
IC packaging and testing services provide ASE Technology Holding Co. shed 1.59 percent to close at NT$155.00, while smartphone IC designer MediaTek Inc. ended up 0.72 percent at NT$1,400.00.
On hopes that U.S.-based artificial intelligence chip designer Nvidia Corp. will present positive leads at its annual GPU technology conference (GTC) slated to open next week, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 1.19 percent to close at NT$170.00, while Quanta Computer Inc., another AI server supplier lost 0.39 percent to end at NT$256.50.
“Select old economy heavyweights attracted rotational buying after their recent losses, providing additional support to the Taiex,” Su said. “But I prefer to say their gains were largely technical in nature.”
The petrochemical industry rose 1.34 percent with Formosa Plastics Corp. up 7.25 percent to close at NT$39.95 and Formosa Petrochemical Corp. increased 6.00 percent to end at NT$39.75. Meanwhile, Nan Ya Plastics Corp. gained 4.19 percent to close at NT$33.55, and Formosa Chemicals & Fibre Corp. ended up 3.59 percent at NT$28.85.
In the steel industry, which rose 1.81 percent, China Steel Corp., the largest steel maker in Taiwan, gained 2.53 percent to close at NT$24.30, and Chun Yuan Steel Industry Co. ended up 3.60 percent at NT$20.15.
The financial sector closed mixed down 0.03 percent as Fubon Financial Holding Co. lost 0.90 percent to end at NT$88.20, but Cathay Financial Holding Co. rose 0.15 percent to end at NT$66.00.
“Investors had better keep a close eye on how the U.S. government will impose reciprocal tariffs and the aftermath, which will affect global financial markets,” Su said.
According to the TWSE, foreign institutional investors sold a net NT$10.49 billion worth of shares on the main board Friday.
