Local market finishes trading below 8,200 points
CNATAIPEI--Shares in Taiwan closed below 8,200 points Thursday as investors rushed to dump stocks amid concerns over the debt ceiling woes in Washington, dealers said.
September 27, 2013, 12:08 am TWN
With the focus on “Apple concept stocks,” which are local suppliers to iPhone and iPad, downward pressure sent the bellwether electronics sector lower, while the financial sector encountered profit taking, dealers said.
The weighted index ended down 99.22 points, or 1.19 percent, at the day's low of 8,184.68, off an early high of 8,290.10. Turnover totaled of NT$71.65 billion (US$2.42 billion) during the session.
The market opened up 6.20 points at the day's high, but heavy resistance set in as the index was close to 8,300 points, dealers said. Most of the selling focused on Taiwanese suppliers to Apple Inc., such as Largan Precision Co. and Hon Hai Precision Industry Co., the added.
Selling spread to non-high-tech stocks, in particular in the financial sector, on concerns over a possible default by the U.S. government on its bond payments resulting from its debt ceiling problems, dealers said.
“The debt ceiling concerns arose from a warning by U.S. Treasury Secretary Jack Lew that Wall Street should take the debt problems more seriously,” Concord Securities analyst Kerry Huang said.
“Many investors at home and abroad simply seized the treasury secretary's comments as an excuse to lower their holdings to avoid more losses down the road,” Huang said, referring to the decline on Wall Street.
In the local market, high-tech stocks were hit by bearish sentiment as investors took hints from a 1.55 percent decline in Apple's shares on Wall Street overnight, Huang said.
Market Remains Weak on Wall Street Uncertainty
Among the losing Apple concept stocks, Largan, one of the major smartphone camera lens suppliers to the U.S. vendor, fell 2.66 percent to close at NT$988.00, while Hon Hai, which assembles iPhone and iPad, dropped 1.30 percent to end at NT$75.80.