Shares down on weak performance of large-cap stocks
CNATAIPEI-- Shares in Taiwan were weighed down Monday by the lackluster performance of large-cap electronics and financial stocks, which pulled the market's benchmark index below 8,200 for only the third time in the last 10 trading sessions.
October 1, 2013, 12:09 am TWN
The weighted Taiex closed down 56.81 points, or 0.69 percent, at 8,173.87, after moving between 8,137.11 and 8,204.40, on turnover of NT$68.50 billion (US$2.32 billion).
Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) were hurt by Friday's announcement that Chiang Shang-yi, an executive vice president and co-chief operating officer overseeing R&D, is retiring.
The 67-year-old Chiang was seen as one of the three executives likely to replace TSMC Chairman and CEO Morris Chang when he steps down as CEO next year.
TSMC's American depositary receipts listed on the New York Stock Exchange fell 1.44 percent to US$17.07 on Friday, and its shares in Taiwan dropped 2.43 percent to NT$100.5 on Monday.
Shares of Hon Hai Precision Industry Co., the world's largest contract manufacturer and the second-heaviest weighted stock on the local market, closed 0.52 percent lower at NT$75.90.
Smartphone maker HTC Corp. was one of the few electronics shares to outperform the market, rising 1.54 percent to NT$132, following the announcement Friday that it had concluded a deal to sell its remaining 24.84 percent stake in American headphone maker Beats Electronics.
Although the sale is expected to help boost the company's bottom line, both Merrill Lynch and Nomura Securities lowered their target price for HTC shares to NT$92 and NT$103, respectively, on concerns over the smartphone maker's sales outlook.
Construction Sector Bucked Market's Downward Trend