Taipei, March 28 (CNA) Taiwan’s main stock market again faced a sell-off Friday as the latest tariff actions against imported automobiles and parts by the United States weighed on investors, dealers said.
After falling 1.39 percent on Thursday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 348.87 points, or 1.59 percent, at 21,602.89 Friday, after moving between 21,525.05 and 21,836.16. Turnover totaled NT$314.42 billion (US$9.48 billion).
“Judging from the Taiex’ slides Thursday and Friday, I think investor confidence has turned fragile after [Donald] Trump’s newest tariff policy,” MasterLink Securities analyst Tom Tang said, referring to the 25 percent duty imposed on cars not made in the U.S. market.
“Turnover stayed low, indicating many investors were reluctant to buy the dip for now as they were waiting for Trump’s reciprocal tariff policy [expected by April 2],” Tang said.
The bellwether electronics sector led the Taiex lower after the Philadelphia Semiconductor Index slid 2.07 percent overnight.
The market was helped, however, by the limited fall of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which closed down only 0.63 percent at NT$952.00 despite a 3.03 percent decline in its American depositary receipts overnight.
“After the recent sell-off amid U.S. tariff concerns, TSMC became oversold in terms of its sound fundamentals,” Tang said. “The stock is trading at a low price to earnings multiple of about 15 and appeared really cheap.”
Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 1.35 percent to end at NT$1,465.00, and IC packaging and testing services provider ASE Technology Holding Co. fell 3.83 percent to close at NT$150.50.
With AI chip designer Nvidia Corp. shares down 2.05 percent overnight, iPhone assembler and AI server maker Hon Hai Precision Industry Co. shed 4.05 percent to end at NT$154.00.
“Weak sentiment sent ripples through the entire market with large cap old economy stocks suffering losses, putting more pressure on the Taiex,” Tang said.
In the old economy sector, Formosa Chemicals & Fibre Corp. lost 3.76 percent to close at NT$26.90, and Formosa Plastics Corp. dropped 3.72 percent to end at NT$37.50.
In addition, Longchen Paper & Packaging Co. shed 2.76 percent to close at NT$10.55, and rival Cheng Loong Corp. lost 2.52 percent to end at NT$19.35.
The financial sector fell 1.15 percent. Cathay Financial Holding Co. ended down 1.99 percent at NT$64.00 and Fubon Financial Holding Co. closed 1.89 percent lower at NT$88.20.
With tensions between Taiwan and China remaining high, “military concept stocks bucked the downturn,” Tang said. Aircraft component supplier Aero Win Technology Corp. and Lungteh Shipbuilding Co. soared 10 percent, the maximum daily increase, to close at NT$49.90 and NT$125.50, respectively.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$33.67 billion in shares on the market Friday.
After Friday’s losses, the Taiex had shed 1,450.29 points, or 6.29 percent, so far this month and dipped to its lowest level since Sept. 11, 2024, when the index closed at 21,031.00.
