Category: Market

Taiwan Semiconductor Manufacturing Co. (TSMC) posted sales of more than NT$150 billion (US$5.36 billion) in September for the first time in its history, a milestone that analysts attributed to the debut of the latest iPhone 13 lineup.

In a statement released Friday, TSMC said it posted consolidated sales of NT$152.69 billion in September, up 11.1 percent from a month earlier and up 19.7 percent from a year earlier.

TSMC is believed to be the sole supplier of the A15 processor for the production of the iPhone 13 series, which went on sale globally in September, and analysts said an increase in orders from Apple Inc. was the major driver to the chipmaker’s shipments during the month.

Including the strong showing in September, TSMC’s consolidated sales for the third quarter of the year rose 11.42 percent from the previous quarter to NT$414.67 billion.

The third quarter sales ended within the US$14.6 billion to US$14.9 billion range provided by the company in its guidance at an investor conference in mid-July.

In the first nine months of the year, TSMC generated about NT$1.15 trillion in consolidated sales, up 17.5 percent from a year earlier, according to the company.

Analysts said TSMC is expected to continue to benefit from its efforts to develop the advanced 5 nanometer process, the latest technology for which TSMC has launched mass production, to boost sales in the fourth quarter.

In addition to the iPhone 13’s A15 processor that uses TSMC’s 5nm process, several other major clients such as Qualcomm Inc., Advanced Micro Devices Inc., and MediaTek Inc. have also adopted 5nm chips for products in the October-December period, analysts said.

TSMC has scheduled an investor conference for Oct. 14 to detail its third quarter results and give guidance for the fourth quarter as well as its global expansion plans and capital expenditure, analysts added.

The company released its September sales data after the stock market closed Friday. The stock closed down 0.86 percent at NT$575.00, dropping its market capitalization by NT$129.65 billion from a session earlier to NT$14.9 trillion.

Source: Focus Taiwan News Channel

Shares in Taiwan closed lower Wednesday as investors took advantage of an earlier rebound, pocketing profits amid lingering concerns over possible volatility on the U.S. markets despite an overnight rally, dealers said.

With the benchmark 10-year U.S. Treasury yield on the rise, the local bellwether electronics sector largely came under pressure, while a spike in international crude oil prices lent support to large cap petrochemical stocks, preventing the broader market from falling further, they said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 67.59 points, or 0.41 percent, at 16,393.16, after moving between 16,303.63 and 16,568.21 during the day. Turnover totaled NT$287.48 billion (US$10.29 billion).

The market opened up 0.17 percent and soon reached the day’s high as buying was triggered by the gains on the U.S. markets, with the Dow Jones Industrial Average having risen 0.92 percent and the tech-heavy Nasdaq index having increased 1.25 percent on Tuesday, dealers said.

The early gain failed to be sustained as selling emerged in the wake of losses incurred on other regional markets such as Tokyo and Hong Kong to push the Taiex down to negative territory, dealers added.

The fall continued into the end of the session, while market heavyweights, in particular contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), were the target of last-ditch buying which helped recoup part of their earlier losses and lent some support to the broader market, dealers added.

“I think the rally on the U.S. markets overnight was just technical in nature and more volatility could come if Capitol Hill fails to reach an agreement to raise the debt ceiling by Oct. 18 to prevent the government’s default on its debt,” Nan Hua Securities analyst Kevin Su said.

U.S. Treasury Secretary Janet Yellen has said she believes the economy would fall into a recession if the debt ceiling is not raised before a default on the U.S. debt.

“So, the Taipei market simply joined its counterparts in Tokyo and Hong Kong in giving up earlier gains as many investors here feared more negative leads will come from overseas,” Su said.

The bellwether electronics sector fell 0.51 percent after its earlier upturn was reversed as higher interest rates made them look less attractive, Su said.

“Fortunately, TSMC, the most heavily weighted stock in the local market, recovered part of its earlier losses or the tech sector and the entire Taiex would have fallen further,” Su said.

TSMC fell 0.17 percent to close at NT$571.00 after coming off a low of NT$565.00. Dealers said the stock saw strong technical support ahead of NT$569.00, the 240-day moving average.

Other tech large cap semiconductor stocks suffered more losses with United Microelectronics Corp., a smaller contract chipmaker, declining 1.96 percent to end at NT$59.90, and dynamic random access memory chip supplier Nanya Technology Corp. falling 4.95 percent to close at NT$61.40.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market capitalization, bucked the downturn by rising 1.48 percent to end at NT$103.00 after the contract electronics maker reported a 46.41 percent year-on-year increase in consolidated sales for September.

“The fourth quarter is a traditional peak season for Hon Hai so today’s buying also reflected this upbeat mood,” Su said.

Su said the petrochemical sector rose 1.49 percent, on the back of rising crude oil prices, adding, “the major entities under the Formosa Plastics Group’s corporate umbrella simply led the sector in going higher.”

Among them, Formosa Petrochemical Corp. increased 2.63 percent to close at NT$101.50, Formosa Plastics Corp. rose 2.61 percent to end at NT$118.00, Formosa Chemicals & Fibre Corp. increased 1.58 percent to close at NT$83.50, and Nan Ya Plastics Corp. ended up 1.24 percent at NT$90.00.

“But, higher crude prices cut both ways. Shipping and airline stocks in the transportation sector came under pressure amid fears over rising costs,” Su said.

The transportation sector fell 4.96 percent, with container cargo shipper Evergreen Marine Corp. falling 5.05 percent to close at NT$97.80, and Wan Hai Lines Ltd. declining 6.65 percent to end at NT$161.50. In addition, China Airlines fell 2.35 percent to close at NT$16.65 and EVA Airways dropped 2.67 percent to end at NT$18.20.

In the steel sector, which fell 1.67 percent, adding pressure to the main board, China Steel Corp., the largest steelmaker in Taiwan, declined 1.54 percent to close at NT$35.05, and Chung Hung Steel Corp. dropped 2.44 percent to end at NT$38.50.

“How the U.S. markets will perform is expected to continue to dictate the global financial markets,” Su said. “We have to watch closely not only whether the U.S. debt ceiling will be raised by the deadline but also the U.S. Treasury yield movement.”

According to the TWSE, foreign institutional investors sold a net NT$23.86 billion worth of shares on the main board Wednesday.

Source: Focus Taiwan News Channel

Taiwan’s Ministry of Economic Affairs (MOEA) signed memorandums of understanding (MOUs) with the U.S. states of Arizona and New Mexico to deepen bilateral trade cooperation during a virtual ceremony at the opening of the 10th U.S. Business Day in Taipei on Tuesday.

The U.S. Business Day, co-hosted by MOEA and Taiwan External Trade Development Council (TAITRA), is an annual business event between Taiwan and the United States.

Now in its 10th version, the event is being staged at the Taipei International Convention Center on Tuesday and Wednesday as Taiwan-U.S. business cooperation and partnership ties are at their best point in time, according to a statement issued by TAITRA.

During the two-day event, a series of seminars and symposiums will be held under the Taiwan-U.S. Trade Forum, a dialogue platform designed for Taiwan to make new U.S. trade strategy and for the U.S. to promote information regarding business opportunities from infrastructure projects in various U.S. states, according to TAITRA.

The opening ceremony of the event was attended in person by Cynthia Kiang (???), director-general of the MOEA’s Bureau of Foreign Trade, and Brent Omdahl, the commercial section chief of the American Institute in Taiwan, as well as online by Richard Steffens, the U.S. Department of Commerce’s acting deputy assistant secretary for Asia.

As part of the event, Kiang signed a MOU during a virtual signing ceremony with the Arizona Commerce Authority and the New Mexico Economic Development Department, respectively, to deepen bilateral economic and trade cooperation in the semiconductor and information communication technology areas.

Despite the enormous economic damage caused by the COVID-19 pandemic over the past year, trade ties between Taiwan and the U.S. remained tight, Kiang said.

This is evident by the fact that total Taiwan-U.S. trade in 2020 exceeded US$83 billion and the two countries have increased investment in each other’s economy, Kiang added.

For instance, U.S. tech companies like Google and Microsoft have increased their investment in Taiwan, while contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) and electronics contract manufacturer Hon Hai Precision Industry Co. have expanded investment in the U.S., according to Kiang.

TAITRA Chairman James Huang (???) said that with the aim of strengthening business investment and trade ties between the two countries, this year’s forum will focus on the discussion of topics related to 5G, clean energy, supply chains, and electric vehicles.

According to TAITRA, just several hours after the event started Tuesday morning, more than 20 American buyers had specified their purchasing needs for products like information communication devices, machinery, metal fasteners, automobile spare parts and components, and bicycle spare parts.

Source: Focus Taiwan News Channel

Shares in Taiwan finished lower by more than 160 points Monday, as the stock market failed to maintain earlier gains resulting from a technical rebound on the U.S. markets at the end of last week, dealers said.

Old economy stocks, especially in the shipping industry, came under heavy pressure which pushed down the broader market to negative territory, while select large tech stocks either posted gains or recouped part of their earlier losses to give support to the main board at the end of the session, they said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 162.54 points, or 0.98 percent, at 16,408.35, after moving between 16,380.06 and 16,680.29. Turnover totaled NT$299.54 billion (US$10.75 billion).

The market opened up 0.18 percent and hit the day’s high after rising over 100 points in the early morning session as buying was sparked by a rally on the U.S. markets Friday, where the Dow Jones Industrial Average bounced back by 1.43 percent from the doldrums in the previous sessions, dealers said.

But with the Taiex moving closer to the nearest technical resistance ahead of 16,700 points, selling set in with a focus on shipping heavyweights as investors took cues from losses incurred by other regional markets, including the Hong Kong market, where the trading of shares of China’s debt-ridden property developer Evergrande was suspended, they said.

“Amid volatility in the regional markets, market sentiment here got hit as margin calls on shipping stocks after their recent tumbles prompted many retail investors to scramble to dump these stocks,” Concord Securities analyst Kerry Huang said.

A margin call occurs as the value of an investor’s margin account falls below the broker’s required amount, which requires the investor to either deposit more money in the account or sell some of the assets held in the account.

“Despite the 160-point drop in the Taiex, turnover remained thin today, indicating more selling in these shipping stocks might come, which could pave the way for further losses down the road,” Huang said.

The heavy losses suffered by large cap shipping stocks pushed down the transportation sector by 7.37 percent, causing the broader market to trend lower.

Among the container cargo shipping stocks which were faced with margin calls, Evergreen Marine Corp., Yang Ming Marine Transport Co. and Wan Hai Lines Ltd. plunged 10 percent, the maximum daily decline, to close at NT$102.50, NT$97.20, and NT$165.50, respectively.

Bucking the downturn, bulk cargo shippers Sincere Transport Co. rose 1.67 percent to end at NT$36.50, and U-Ming Marine Transport Co. rose 4.77 percent to close at NT$65.90.

Elsewhere in the old economy sector, Nan Ya Plastics Corp. fell 1.13 percent to close at NT$87.30, and China Steel Corp., the largest steelmaker in Taiwan, shed 2.37 percent to end at NT$35.00, while Formosa Plastics Corp. rose 0.96 percent to close at NT$111.00, and textile brand Far Eastern New Century Corp. increased 0.69 percent to end at NT$29.35.

“While the bellwether electronics sector as a whole finished below the previous closing level, select large cap stocks, especially in the semiconductor industry, appeared resilient compared with the broader market,” Huang said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, fell 0.35 percent to close at NT$572.00 after hitting a low of NT$569.00. Led by TSMC, the electronics sector declined 0.80 percent to end at 772.52, up slightly from a low of 770.76.

“I suspect some government-led funds stood on the buy side for TSMC in a bid to keep the broader market from falling further by taking advantage of the stock’s huge weighting,” Huang said.

Among other resilient semiconductor stocks, integrated circuit designer MediaTek Inc. rose 0.79 percent to close at NT$892.00, and dynamic random access memory chip supplier Nanya Technology Corp. increased 0.93 percent to end at NT$64.90.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co. closed unchanged at NT$103.00, and Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., also ended unchanged at NT$2,135.00.

On expectations that the NT$5,000 spending vouchers to be issued by the government from Friday will boost consumption, hotel operators Chateau International Development Co. gained 8.66 percent to close at NT$35.15, and Formosa International Hotels Corp. rose 3.83 percent to end at NT$149.00.

In addition, Lion Travel Service Co. increased 5.03 percent to close at NT$87.70, and Phoenix Tours International Inc. rose 3.39 percent to end at NT$42.70.

“We have to watch closely whether the Taiex will maintain its strength above the next technical support at 16,248 points, the intraday low on Aug. 20. Otherwise, further losses could come to push down the main board to test 16,000 points,” Huang said.

According to the TWSE, foreign institutional investors sold a net NT$3.11 billion worth of shares on the main board Monday.

Source: Focus Taiwan News Channel

Shares in Taiwan moved sharply lower Friday as investors reacted to plunges on U.S. markets and rushed to cut their holdings in large cap stocks, dealers said.

The bellwether electronics sector came under heavy pressure amid concerns over rising U.S. 10-year treasury yields, which made tech stocks look more expensive, and raw material stocks also fell as investors decided to pocket built-up gains, they said.

The Taiex, the Taiwan Stock Exchange’s (TWSE) benchmark weighted index, ended down 363.88 points, or 2.15 percent, at 16,570.89, after moving between 16,503.74 and 16,883.00. Turnover totaled NT$339.63 billion (US$12.18 billion).

The market opened down 0.31 percent after a 1.59 percent fall in the Dow Jones Industrial Average overnight, and continued to tumble until about the last half hour of the session, when a slight rebound occurred, dealers said.

For the week, the Taiex fell 689.30 points, or 3.99 percent, largely due to volatility on global markets.

“It was understandable that the Taiex faced headwinds on the back of the U.S. markets’ bleeding as the two markets have been highly correlated,” Cathay Future Consulting analyst Tsai Ming-han said.

“Today’s turnover surpassed the 20-day moving average of about NT$300 billion, indicating many investors engaged in panic selling.”

Tsai said the tech sector again dragged the Taiex lower because of its heavy weighting. The electronics sector lost 1.68 percent, and the semiconductor sub-index finished down 1.45 percent.

“The silver lining was that contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, came off its early low and outperformed the broader market to prevent it from falling further.”

TSMC lost 1.03 percent to close at NT$574.00, after hitting a low of NT$571.00. “The stock moved closer to its nearest technical support at NT$567.00, its 240-day moving average, which attracted bargain hunters to pick up its shares.”

Among other falling semiconductor stocks, United Microelectronics Corp., a smaller contract chipmaker, fell 2.19 percent to end at NT$62.60, and integrated circuit designer MediaTek Inc. closed down 2.21 percent at NT$885.00.

Dynamic random access memory chip supplier Nanya Technology Corp. closed 2.43 percent lower at NT$64.30.

“Concerns over the adverse effects of power rationing in China continued to affect sentiment toward Taiwanese electronics component makers, in particular in the printed circuit board industry, which have production sites there,” Tsai said.

“But many of them have inventory on hand to supply to their clients, and I think the impact will be limited.”

In the PCB sector, Compeq Manufacturing Co. lost 4.69 percent to close at NT$35.55, and Nan Ya Printed Circuit Board Corp. fell 2.76 percent to end at NT$423.00. Tripod Technology Corp., however, gained 1.35 percent to close at NT$113.00.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co., the world’s largest contract electronics maker, closed 1.90 percent lower to end at NT$103.00.

“Many raw material stocks saw heavy profit-taking today on gains posted in recent sessions. The U.S. market weakness simply gave investors a reason to cut their holdings,” Tsai said.

In the petrochemical sector, which lost 3.13 percent, Nan Ya Plastics Corp. shed 3.61 percent to close at NT$88.20, Formosa Plastics Corp. fell 3.08 percent to end at NT$110.00, Formosa Petrochemical Corp. dropped 2.42 percent to close at NT$96.80, and Formosa Chemicals & Fibre Corp. ended down 2.26 percent at NT$82.00.

The paper sector also encountered heavy selling, finishing down 3.79 percent. Cheng Loong Corp. closed 3.51 percent lower at NT$34.40, YFY Inc. finished down 3.81 percent at NT$32.85, and Chung Hwa Pulp Corp. ended down 5.13 percent at NT$24.05.

Shipping industry stocks were hit hard by a decline in freight rates on routes between the Far East and both the United States and Europe, Tsai said.

Evergreen Marine Corp., the largest container cargo shipper in Taiwan, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. all plunged 10 percent to end at NT$113.50, NT$108.00 and NT$183.50, respectively.

“After the losses this week, the Taiex has become technically weaker, with more losses possible,” Tsai said. “We have to watch closely whether tech stocks on U.S. markets will stage a rebound, which could lead their Taiwanese counterparts to bounce back.”

According to the TWSE, foreign institutional investors sold a net NT$39.65 billion in shares in Taiwan Friday.

Source: Focus Taiwan News Channel

The Cabinet-level Council of Agriculture (COA) on Friday sent documents to Taiwan’s World Trade Organization (WTO) mission as it prepares to file “specific trade concerns” in November over China’s move to suspend imports of wax apples and custard apples from Taiwan.

COA chief Chen Chi-chung (???) told the press that as of Thursday, China had failed to provide Taiwan with an official explanation for the import suspension; as a result, Taiwan will submit its concerns to the Sanitary and Phytosanitary Measures Committee (SPS Committee) under the WTO.

The WTO committee oversee the implementation of the “Agreement on the Application of Sanitary and Phytosanitary Measures,” also known as the SPS agreement, and provides a forum for discussion on animal and plant health and food safety measures affecting trade.

On Sept. 19, the Department of Animal and Plant Quarantine under China’s General Administration of Customs issued a notice announcing a suspension on the import of Taiwanese wax apples and custard apples after discovering mealybug Planococcus minor in several shipments from Taiwan this year.

The suspension took effect on Sept. 20, one day after the notice was issued.

Following the suspension of pineapple imports at the end of February, the unexpected move marked the second time this year China has suspended imports of fruit from Taiwan for mealybugs.

In response, the COA dismissed the accusations and asked China to further explain its unilateral decision by the end of September.

At that time, the council also noted that if China failed to provide an acceptable response, Taiwan would file a dispute settlement case with the WTO in accordance with relevant regulations.

China’s Taiwan Affairs Office spokeswoman Zhu Fenglian (???) said on Wednesday that Beijing had discovered gray pineapple mealybugs alongside the previously stated Planococcus minor, as well as the presence of germs that infect the galls of cocoa flowers, on wax apples and custard apples from Taiwan.

In response, Chen said Thursday that China provided Taiwan with only one sheet of A4 listing the number and date of items that failed the inspection. No photo evidence or scientific proof was included, he argued, urging China to provide scientific evidence supporting its claims.

The agriculture minister said multiple measures have been taken to fix the bug problem since last year and the COA informed the Chinese authorities of the improvement measures in September.

However, China still moved to suspend the import of wax apples and custard apples from Taiwan unilaterally, Chen said, expressing hope that the trade dispute can be settled through the cross-strait quarantine mechanism before the SPA Committee’s upcoming regular meeting.

According to the COA, if the dispute is not settled before the end of October, Taiwan’s permanent mission to the WTO will raise its trade concerns at the SPS Committee meeting scheduled for Nov. 3-5.

Source: Focus Taiwan News Channel

The Yuanta-Polaris Research Institute, one of Taiwan’s leading economic think tanks, is now the most bullish of any domestic institution after it raised its forecast of the country’s 2021 gross domestic product (GDP) growth for 2021 to 6%.

The upward revision, released Wednesday, resulted from robust private investment and Taiwan’s strong export performance driven by high global demand for tech gadgets.

In the latest forecast, Yuanta-Polaris raised its forecast of Taiwan’s GDP growth by 1.6 percentage points from its previous estimate made in March to 6 percent.

The forecast topped the 5.88 percent growth projected by the Directorate General of Budget, Accounting and Statistics, 5.75 percent growth forecast by Taiwan’s central bank, and 5.40 percent growth expected by the Taiwan Institute of Economic Research.

The Chung-Hua Institution for Economic Research and Academia Sinica have forecast 2021 GDP growth of the 5.16 percent and 5.05 percent, respectively.

The think tank has also forecast Taiwan’s 2022 GDP growth at 3.20 percent.

Yuanta-Polaris President Liang Kuo-yuan (???) said Taiwan’s exports showed sustained growth momentum, led by the semiconductor industry, and have been a main pillar of the country’s GDP growth.

The think tank raised its forecast for 2021 export growth to 18.10 percent, up from a previous estimate of 5.16 percent, and raised its estimate for import growth to 18.05 percent, from a previous 3.97 percent.

In the third and fourth quarters this year, exports are expected to grow 16.77 percent and 12.50 percent, respectively, Yuanta-Polaris said.

To meet vibrant global demand, Liang said, many export-oriented manufacturers have been keen to expand their production capacity and upgrade their technologies, leading to an increase in private investment this year.

As a result, Yuanta-Polaris has raised its forecast for Taiwan’s private investment growth for 2021 to 11.90 percent from an earlier estimate of 4.07 percent, and capital formation is expected to grow 9.52 percent, up from the previous estimate of 3.66 percent.

Taiwan’s economy has been in an uneven growth mode, however, and despite the sharp rise in exports, local demand has been hurt by an outbreak of domestically transmitted COVID-19 cases in mid-May, the think tank said.

According to Yuanta-Polaris, Taiwan’s private consumption is expected to grow only 1.09 percent in 2021, a downward revision from a previous estimate of 3.73 percent growth.

Liang said weakening private consumption has affected the local service sector and hurt the job market.

“This unbalanced economic growth has me worried,” he said.

Yuanta-Polaris said Taiwan’s consumer price index (CPI) and core CPI, which excludes vegetables, fruits and energy, are expected to grow 1.77 percent and 1 percent, respectively, in 2021.

The stable CPI growth means it is unlikely that the central bank will raise its key interest rates this year.

Last week, the central bank concluded a quarterly policymaking meeting, leaving interest rates unchanged for the sixth consecutive quarter.

Source: Focus Taiwan News Channel

Apple Inc. launched four new 5G-enabled iPhones on Wednesday with pre-orders to start Friday in Taiwan, as well as new iPad models and the latest Apple Watch.

The four new smartphone models — the iPhone 13 mini, iPhone 13, iPhone 13 Pro and iPhone 13 Pro Max — are powered by the new A15 Bionic chip, currently the fastest for smartphones and made by Taiwan Semiconductor Manufacturing Co. (TSMC).

The A15 Bionic was manufactured using TSMC’s second-generation 5-nanometer fabrication process and includes 15 billion transistors that make the new iPhones up to 50 percent faster than other brands, according to the company.

The introduction of the new iPhones is expected to benefit TSMC significantly, market observers said.

Customers in Taiwan will be able to pre-order the new phones on Sept. 17 before the devices become available to the general public on Sept. 24.

This year marks the sixth consecutive year since 2016 that Taiwan is on the list of countries and regions able to pre-order Apple’s new smartphone models in the first round after their debut, which also includes Australia, Canada, China, Germany, India, Japan, the United Kingdom, the United States, and more than 30 other countries and regions.

The iPhone 13 mini starts at NT$22,900 (US$826.79), the standard iPhone 13 starts at NT$25,900, the Pro starts at NT$32,900, and the iPhone 13 Pro Max at NT$36,900, according to the Apple Online Store in Taiwan.

The Pro model features a 6.1-inch display and the Max a 6.7-inch screen, while the iPhone 13 mini has a 5.4-inch display and the iPhone 13 a 6.1-inch display.

The iPhone 13 has a smaller display cutout at the top of the screen, as well as larger batteries that provide the devices with between 1.5 and 2.5 more hours of battery life than last year’s models depending on device size, Apple said.

At the same product launch event, the company also unveiled a new iPad which features a faster A13 processor and a 12-megapixel front-facing camera for improved video calls such as on Zoom. The new iPad starts at NT$10,500 in Taiwan.

Apple also announced a new iPad Mini, which has a smaller 8.3-inch screen, a 12-megapixel rear camera, and stereo speakers, with a price starting at NT$14,900 in Taiwan.

Apple also rolled out its latest Apple Watch Series 7, which features narrower borders that allow the display to maximize screen area while minimally changing the dimensions of the watch itself. The new watch will be released sometime this fall, according to Apple.

Source: Focus Taiwan News Channel

Shares in Taiwan moved slightly lower Tuesday as investors pocketed initial gains built on the technical rebound staged by the United States markets overnight, dealers said.

However, turnover remained thin, with many investors staying on the sidelines amid fears over possible negative leads during the upcoming four-day Mid-Autumn Festival holiday, which starts on Saturday, they said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 11.41 points, or 0.07 percent, at 17,434.90, after moving between 17,424.54 and 17,529.47. Turnover totaled NT$257.23 billion (US$9.29 billion).

The market opened up 0.10 percent and rose to the day’s high in the early morning session as investors took their cue from a rally on U.S. markets, where the Dow Jones Industrial Average rose 0.76 percent Monday, ending a five day losing streak, dealers said.

However, as the Taiex breached the 17,500 point mark at one point, selling emerged, focusing on large tech stocks, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), as well as steel and shipping stocks, pushing the main board into negative territory by the end of the session, dealers added.

“Despite the initial gains, investors appeared reluctant to chase prices before the upcoming four-day long weekend,” Cathay Futures Consultant analyst Tsai Ming-han said.

“With many investors turning away from the trading floor, turnover remained light, which was not favorable for tech heavyweights to sustain their earlier upturn. Do not mention any breakthrough for the moment,” Tsai said.

The tech sector accounted for less than 50 percent of total turnover, paving the way for consolidation on the main board, he added.

The electronics index closed down 0.02 percent at 825.24 after coming off a high of 829.14, with the semiconductor sub-index down 0.05 percent after TSMC, the most heavily weighted stock on the local market, lost 0.33 percent to end at NT$613.00, off a high of NT$618.00.

Selling spread to other semiconductor stocks, with United Microelectronics Corp., a smaller contract chipmaker, down 1.20 percent to end at NT$66.00, and Novatek Microelectronics Corp., a supplier of drive ICs for flat panel use, losing 0.90 percent to close at NT$440.00.

Bucking the downturn, smartphone IC designer MediaTek Inc. rose 2.16 percent to end at NT$947.00, boosting its market capitalization to the second highest on the Taiex after TSMC.

Meanwhile, dynamic random access memory chip supplier Nanya Technology Corp. added 0.61 percent to close at NT$66.20.

Also in the electronics sector, shares in iPhone assembler Hon Hai Precision Industry Co. rose 0.94 percent to end at NT$107.50, while Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., lost 1.94 percent to close at NT$2,530.00.

“Old economy stocks, in particular in the steel and shipping industries encountered profit taking, which placed pressure on the broader market,” Tsai said, referring to the retreat of many local investors who used to favor these stocks.

The transportation sector, where many shipping stocks are traded, ended down 4.14 percent.

Among the falling container cargo shippers, Evergreen Marine Corp., the largest shipping services provider in Taiwan, lost 6.44 percent to close at NT$123.50.

Yang Ming Marine Transport Corp. dropped 5.62 percent to end at NT$117.50, while Wan Hai Lines Ltd. fell 4.05 percent to close at NT$201.50. In addition, bulk cargo shipper Chinese Maritime Transport Ltd. declined 0.85 percent to end at NT$71.20.

In the steel sector, which lost 1.61 percent, China Steel Corp., Taiwan’s largest steel maker, fell 0.50 percent to close at NT$39.85, Ta Chen Stainless Pipe Co. lost 2.38 percent to end at NT$49.30, and China Steel Structure Corp. shed 7.49 percent to close at NT$71.60.

Tung Ho Steel Enterprise Corp. rose 0.11 percent to end at NT$43.80.

Elsewhere in the old economy sector, Formosa Plastics Corp. rose 1.49 percent to close at NT$102.00, and textile brand Far Eastern New Century Corp. gained 1.02 percent to end at NT$29.75, while paper product supplier YFY Inc. lost 2.70 percent to close at NT$34.25.

“I expect trading will continue to be quiet before the holiday with the Taiex perhaps moving around the 60-day moving average of 17,411 points,” Tsai said.

“Since foreign institutional investors are largely standing on the buy side, it is unlikely the main board will suffer a major pullback after the holiday ends,” Tsai added.

Despite the fall of the Taiex, foreign institutional investors bought a net NT$6.54 billion worth of shares on the main board Tuesday, according to the TWSE.

Source: Focus Taiwan News Channel

Shares in Taiwan closed lower Monday with market sentiment hit by volatility on the United States markets at the end of last week, keeping turnover at a low level, dealers said.

The bellwether electronics sector came under pressure in the wake of losses suffered by tech stocks on the U.S. markets, but financial and old economy stocks largely bucked the downturn, helping the main board remain above the 60-day moving average of 17,405 points at the end of trading, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 28.26 points, or 0.16 percent, at 17,446.31, after moving between 17,387.57 and 17,482.57. Turnover totaled NT$252.695 billion (US$9.12 billion).

The market opened down 0.13 percent and soon fell to the day’s low in the early morning session after the losses in the U.S. where the Dow Jones Industrial Average fell 0.78 percent Friday, dealers said.

The electronics sector faced downward pressure throughout the session led by a 0.87 percent fall on the tech-heavy Nasdaq index Friday, but the financial and old economy sectors attracted rotational buying to offset the losses incurred by large cap stocks including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), dealers added.

“Despite the Taiex recouping part of its earlier losses, turnover remained thin today, indicating the main board has fallen into consolidation mode,” MasterLink Securities analyst Tom Tang said.

Monday’s turnover was the second lowest this year, beaten only by NT$246.91 billion on Sept 9.

“The low turnover showed many investors remain reluctant to hunt bargains and stayed away from the trading floor at a time when financial authorities have tightened their monitoring of big swings in share prices,” Tang said.

“In addition, fears over further volatility on U.S. markets have caused many local investors to stay on the sidelines,” Tang added.

The electronics sector largely remained in the doldrums Monday, down 0.95 percent with the semiconductor sub-index down 1.21 percent, Tang said.

“TSMC, in the upstream segment in the semiconductor industry, led the downturn,” Tang said. “Although the chipmaker hiked its product prices, the market has growing fears that the price hikes will increase the burden on semiconductor suppliers in the downstream segment.”

TSMC, the most heavily weighted stock on the local market, fell 1.13 percent to close at NT$615.00.

Selling also spread to other semiconductor stocks with United Microelectronics Corp., a smaller contract chipmaker, down 2.05 percent to end at NT$66.80.

Shares in integrated circuit packaging and testing service provider ASE Technology Holding Co. were also down 3.12 percent to close at NT$124.00, but IC designer MediaTek Inc. rose 0.22 percent to end at NT$927.00.

The local market remains awash in liquidity so rotational buying appeared active among many non-tech stocks, Tang said.

“Today, financial heavyweights received a boost from their improving bottom lines, serving as one of the pillars to stabilize the broader market,” he added.

In the financial sector, which rose 1.18 percent, shares in Fubon Financial Holding Co., which ranked as the most profitable among the 15 listed financial holding firms in Taiwan, rose 4.90 percent to close at NT$81.40 after the bank raked in NT$122.35 billion in net profit in the first eight months of this year, up 91 percent from a year earlier.

Cathay Financial Holding Co. was in second place, posting NT$114 billion in net profit in the first eight months of this year, up 91 percent from a year earlier. Its shares rose 1.18 percent to end at NT$59.90 Monday.

“Another bright side for Monday’s market was that many raw material stocks also moved higher, further dampening the impact of tech losses,” Tang said.

In the steel sector, which rode the wave of higher product prices and rose 2.64 percent, China Steel Corp., the largest steel maker in Taiwan, gained 2.43 percent to close at NT$40.05, and Tung Ho Steel Enterprise Corp. grew 3.55 percent to end at NT$43.75.

In addition, China Steel Structure Corp. soared 10 percent, the maximum daily increase, to close at NT$77.40.

Among other gaining old economy stocks, polyethylene resins provider USI Corp. rose 2.72 percent to end at NT$34.00, Asia Polymer Corp. grew 1.99 percent to close at NT$38.35, and Formosa Plastics Corp. added 1.31 percent to end at NT$100.50.

“Since Taiwan will have a long weekend (Sept. 18-21) to celebrate the Mid-Autumn Festival, I expect turnover to remain light for the rest of the week as more investors take to the sidelines amid fears of further U.S. volatility during the break,” Tang said.

According to the TWSE, foreign institutional investors sold a net NT$3.28 billion worth of shares on the main board Monday.

Source: Focus Taiwan News Channel