Taiwan Stock Market May Extend Friday’s Losses

Taiwan Stock Market May Extend Friday’s Losses

(RTTNews) – The Taiwan stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day slide in which it had stumbled more than 240 points or 2 percent. The Taiwan Stock Exchange now rests just beneath the 12,640-point plateau and it’s looking at another red light again on Monday.

The global forecast continues to be soft, with continued profit taking expected following recent strength in the markets – particularly from the technology shares. The European and U.S. markets were down on Friday and the Asian bourses figure to follow that lead.

The TSE finished modestly lower on Friday following losses from the financial shares, technology stocks and cement companies.

For the day, the index dropped 120.05 points or 0.94 percent to finish at 12,637.95 after trading between 12,559.78 and 12,655.67.

Among the actives, Cathay Financial declined 1.00 percent, while Mega Financial sank 0.87 percent, CTBC Financial dipped 0.27 percent, Fubon Financial shed 0.70 percent, First Financial surrendered 0.96 percent, E Sun Financial lost 0.74 percent, Taiwan Semiconductor Manufacturing Company skidded 1.61 percent, United Microelectronics Corporation shed 0.46 percent, Hon Hai Precision dropped 1.03 percent, Largan Precision retreated 1.08 percent, Formosa Plastic rose 0.13 percent, Asia Cement eased 0.12 percent, Taiwan Cement was down 1.17 percent and MediaTek and Catcher Technology were unchanged.

The lead from Wall Street is negative as stocks suffered an early sharp move to the downside on Friday. The markets pulled well away from session lows but still finished in the red.

The Dow shed 159.39 points or 0.56 percent to finish at 28,133.31, while the NASDAQ tumbled 144.96 points or 1.27 percent to end at 11,313.13 and the S&P 500 sank 28.10 points or 0.81 percent to close at 3,426.96. For the week, the Dow shed 1.8 percent, the NASDAQ dropped 3.3 percent and the S&P fell 2.3 percent.

Technology stocks contributed to the early sell-off on Wall Street once again, as traders continued to cash in on the recent strength in the sector. At its lows of the session, the tech-heavy NASDAQ was down nearly 10 percent from the record intraday high set on Wednesday.

In economic news, the Labor Department reported another substantial increase in U.S. employment in August, although the pace of job growth continued to slow from the record spike in June.

Crude oil prices drifted lower Friday, extending recent losses amid continued concerns about the outlook for gasoline demand and easing of production cuts by leading oil producers. West Texas Intermediate Crude oil futures ended down $1.60 or 4 percent at $39.77 a barrel and finished lower by 7 percent for the week.

Closer to home, Taiwan will release August numbers for imports, exports and trade balance later today. Imports are expected to add 0.7 percent on year after sinking 6.8 percent in July. Exports are called higher by an annual 1.6 percent after adding 0.4 percent in the previous month. The trade surplus is pegged at $5.8 billion, up from $5.37 billion a month earlier.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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