Taiwan stocks end sharply down on hi-tech selloff
TAIPEI, June 1 (Reuters) - A panicky selloff in Taiwan's high-technology sector dragged the stock index to a sharply lower close on Monday, with investors rushing to dump shares amid mounting worries over Asia's economic woes, brokers said.
* Closing: down 297.09 points/3.76 percent at 7,606.25
* Hardest-hit was the trend-setting electronics sector, which fell 5.39 percent on eve of one of Taiwan's biggest computer expositions, as confidence evaporated following Wall Street's big declines and heavy institutional selling
* Selling accelerated in final hour, with index touching low of 7,574.51 -- a 4.15 pct fall -- shortly before the close.
* Taiwan sentiment hurt by Friday's Wall Street losses. Dow Jones industrial average fell 70.25 points, or 0.78 percent, to 8,899.95, while technologies-driven Nasdaq composite index fell 15.75 points, or 0.88 percent, to 1,778.87.
Taiwan's benchmark index opened sharply lower, reflecting bearishness over Wall Street's downturns and weakness in Asia's currencies, and headed further south through the session as lingering confidence evaporated, brokers said.
The electronics index led the slide, with many shares near or at their daily seven percent volatility limit.
''The overall sentiment is negative,'' said Donald Floyd of ING-Barings. ''Most of the selling today was in the electronics sector and this might mean there are some concerns over personal computer growth and bleeding prices in the computer industry.''
Microchip giant Taiwan Semiconductor (2330.TW) -- Taiwan's leading blue chip and a key barometer of wider market sentiment -- tumbled T$7.5 or 6.2 percent to T$114.
biz.yahoo.com
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6.2%....has a nice ring to it. |
