Local bourse weakens, led by electronics stocks
October 20, 2012, 12:06 am TWN
TAIPEI -- Shares on the Taiwan Stock Exchange ended in negative territory Friday as the electronics sector led the downward trend amid concerns over global demand for high-tech devices, dealers said.
Selling focused on large-cap electronics stocks, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai Precision Industry Co., after several U.S. counterparts reported disappointing earnings for the third quarter of this year, the dealers said.
Select old economy stocks, in particular ones with close business ties with China, however, appeared resilient on hopes that the Chinese authorities will come up with further stimulus measures to boost that country's economy, they added.
The weighted index closed down 56.65 points, or 0.75 percent, at 7,408.76, after moving between 7,402.66 and 7,449.22, on turnover of NT$58.20 billion (US$1.99 billion).
The market opened down 0.29 percent as investors rushed to cut their electronics holdings following the worse-than-expected results released by U.S. high-tech giants such as Google Inc. and Advanced Micro Devices Inc. (AMD) on Wall Street overnight, the dealers said.