TAIPEI: Following a drop of more than 100 points in the previous session on heightened geopolitical tension, the weighted index on the Taiwan Stock Exchange had finished slightly lower Monday by 16.53 points, or 0.17 percent, to 9716.
The local bourse remained in the doldrums amid cautious sentiment after the North Korea’s missile launch, which ended in failure but enraged the U.S., the reported large foreign exchange loss due to a stronger New Taiwan Dollar and the growing pressure on capital amid Taiwanese firms ahead of the tax filing season, triggering a pullback of foreign capital from the local stock market, according to the analysts.
During a visit to South Korea, U.S. Vice President Mike Pence warned North Korea on Monday “not to test President Donald Trump’s resolve or the strength of the armed force of the U.S.,” citing the strikes in Syria and Afghanistan.
In the financial sector, Fubon Financial Holding Co. (2881) gave up 0.11 percent to close at NT$47.25, Cathay Financial Holding Co. (2882) dropped 0.53 percent to end at NT$47.25, Mega Financial Holding (2886) and CTBC Financial Holding (2891) remained flat to close at NT$24 and NT$18.45, respectively.
The bellwether electronics sector closed down 0.16 percent Monday. Taiwan Semiconductor Manufacturing Company Limited (TSMC) (2330) and Largan Precision Co. (3008) fell 0.79 to close at NT$187.50 and NT$4,780.00, respectively, while Hon Hai Precision Industry Co. (2317), which assembles iPhones and iPads for Apple Inc., gained 0.62 percent at NT$97.03.
Foreign institutional investors (including mainland investors) sold a net NT$1.57 billion Monday, dealers sold a net NT$542 million, and securities investment trust companies sold a net NT$649 million. Net selling totaled NT$6.78 billion.
