TAIPEI: Taiwan’s stocks extended declines to a nine-month low, led by technology companies that bore the brunt of the losses after disappointing results from Apple Inc.
The benchmark Taiex index lost 1.4 percent to 8,791.12 in a second day of losses, the lowest close since Oct. 28. Taiwan Semiconductor Manufacturing Co. dropped 2.2 percent and Hon Hai Precision Industry Co. tumbled 4.5 percent as gauges of chips, optoelectronics and other techs declined at least 2.8 percent.
“The supply chain of Apple took a hit,” said Parker Wu, a portfolio manager at Agriculture Bank of Taiwan in Taipei. “Sales prospects in the third quarter aren’t promising and tech shares are leading the downturn for the broader market.”
Apple sold 47.5 million iPhones, a 35 percent gain, in its fiscal third quarter that ended in June, the company said in a statement Tuesday. Analysts had anticipated 48.8 million shipments. It forecast revenue of $49 billion to $51 billion in the July-September period, short of the average estimate for $51.1 billion, data compiled by Bloomberg show.
The Taiex has slid 12 percent since climbing to a 15-year high of 9,973.12 on April 27, buoyed by new rules curbing corporate bond holdings of overseas investors and the prospect of an exchange link between Taiwan and China. Global investors sold $1 billion of Taiwan shares this month, paring this year’s purchases to $5.3 billion, exchange data shows.
