Taiex plunges over 3,700 points in early trading as TSMC hits limit down
Taipei, Nov. 6 (CNA) Taiwan's stock market plunged in early trading Friday, following heavy losses on Wall Street and sharp declines in Japanese and South Korean markets amid uncertainty over artificial intelligence (AI) data center policies after the U.S. midterm elections.
The benchmark Taiex on the Taiwan Stock Exchange plunged a record 3,737.67 points within minutes of the market opening, falling below the 40,000-point mark and its 240-day moving average of around 38,827 points.
The index hit an intraday low of 37,837.05 shortly after trading began at 9 a.m., marking the largest intraday point decline in the market's history.
Major electronics stocks and high-priced shares trading above NT$1,000 were broadly in the red, with many hitting their daily limit-down thresholds.
Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, hit its daily limit down at NT$2,020 shortly after trading began, falling NT$220 (US$6.66), its largest intraday drop in absolute price terms on record.
The decline reduced TSMC's market capitalization by NT$5.7 trillion.
Other major electronics stocks also suffered heavy losses.
MediaTek Inc. fell to its daily limit down at NT$3,115, while Hon Hai Precision Industry Co., known globally as Foxconn, plunged more than 9 percent.
Delta Electronics Inc. also hit its daily limit down at NT$1,020, as did ASE Technology Holding Co. at NT$515, Nanya Technology Corp. at NT$324, Nanya Plastics Corp. at NT$224.5 and Yageo Corp. at NT$364.5.
Securities analysts warned that the Taiex could face a wave of margin-call selling as investors who had borrowed money to buy stocks rush to sell their holdings.
They advised investors to wait for technical signals that the market had stabilized.
(By Chung Jung-feng and Elizabeth Hsu)
Taipei, Nov. 6 (CNA) Taiwan's stock market plunged in early trading Friday, following heavy losses on Wall Street and sharp declines in Japanese and South Korean markets amid uncertainty over artificial intelligence (AI) data center policies after the U.S. midterm elections.
The benchmark Taiex on the Taiwan Stock Exchange plunged a record 3,737.67 points within minutes of the market opening, falling below the 40,000-point mark and its 240-day moving average of around 38,827 points.
The index hit an intraday low of 37,837.05 shortly after trading began at 9 a.m., marking the largest intraday point decline in the market's history.
Major electronics stocks and high-priced shares trading above NT$1,000 were broadly in the red, with many hitting their daily limit-down thresholds.
Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, hit its daily limit down at NT$2,020 shortly after trading began, falling NT$220 (US$6.66), its largest intraday drop in absolute price terms on record.
The decline reduced TSMC's market capitalization by NT$5.7 trillion.
Other major electronics stocks also suffered heavy losses.
MediaTek Inc. fell to its daily limit down at NT$3,115, while Hon Hai Precision Industry Co., known globally as Foxconn, plunged more than 9 percent.
Delta Electronics Inc. also hit its daily limit down at NT$1,020, as did ASE Technology Holding Co. at NT$515, Nanya Technology Corp. at NT$324, Nanya Plastics Corp. at NT$224.5 and Yageo Corp. at NT$364.5.
Securities analysts warned that the Taiex could face a wave of margin-call selling as investors who had borrowed money to buy stocks rush to sell their holdings.
They advised investors to wait for technical signals that the market had stabilized.
(By Chung Jung-feng and Elizabeth Hsu)
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