Taipei, April 14 (CNA) Shares in Taiwan closed slightly lower Monday with initial gains eroded as lingering concerns over the Trump administration’s tariffs on semiconductors continued to hurt market sentiment, dealers said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 15.68 points, or 0.08 percent, at 19,513.09 after moving between 19,508.93 and 20,023.63. Turnover totaled NT$461.48 billion (US$14.20 billion).
The market opened up 0.81 percent and buying pushed the Taiex up to the day’s high by about 490 points to top the 20,000 point mark in the early morning session, on the back of a rally on U.S. markets at the end of last week, dealers said.
However, selling emerged, in particular in contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) to send the index into negative territory as investors turned nervous about U.S. tariffs on semiconductors, dealers added.
On Saturday, U.S. President Donald Trump told reporters that his administration will provide more information about tariffs on semiconductors on Monday, while his government has granted temporary exemptions on electronics products.
“Investors simply took the money and ran after trimming their holdings in TSMC as the Taiex rebounded today,” Cathay Futures Consultant analyst Tsai Ming-han said. “They fear Trump’s tariffs on semiconductors will bomb the market.”
“Without disruptions by TSMC’s losses, the smaller over-the-counter market closed higher on U.S. gains,” Tsai said. The OTC index rose 1.79 percent to end at 208.61.
TSMC, the most heavily weighted stock on the local market, lost 2.70 percent to close at the day’s low of NT$865.00. The stock’s fall from the day’s high cost the Taiex about 300 points, sending the electronics index down 0.51 percent.
Among other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. lost 1.49 percent to end at NT$132.50, while smartphone IC designer MediaTek Inc. rose 1.08 percent to close at NT$1,400.00, and application-specific integrated circuit (ASIC) designer Alchip Technologies Inc. gained 4.94 percent to end at NT$2,230.00.
Also in the tech sector, shares in iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 2.97 percent to close at NT$138.50, and Quanta Computer Inc., another AI server supplier, rose 5.80 percent to end at NT$228.00.
Most large-cap non-tech stocks remained largely stable, giving additional support to the broader market, with Formosa Plastics Corp. up 1.58 percent to close at NT$35.35 and Formosa Petrochemical Corp. rising 2.03 percent to end at NT$35.10 after a spike in international crude oil prices over the weekend, Tsai said.
In addition, crude oil price sensitive textile brand Far Eastern New Century Corp. rose 1.54 percent to close at NT$32.90, and Eclat Textile Co. gained 5.23 percent to end at NT$372.00.
In the financial sector, which rose 0.22 percent, Fubon Financial Holding Co. added 0.62 percent to close at NT$80.90, and Cathay Financial Holding Co. rose 0.55 percent to end at NT$54.50.
“Further losses on semiconductor tariffs are possible,” Tsai said. “But, I expect the Taiex will see strong technical support at around 17,391 points (the day’s low on April 9).”
According to the TWSE, foreign institutional investors sold a net NT$18.61 billion worth of shares on the main board Monday.
