Local shares on Friday continued to tumble as the TAIEX fell more than 100 points to close below 9,400 on a sell-off of heavyweight suppliers to Apple Inc, dealers said.
The selling came as investors remained concerned over Apple’s cut in its first-quarter sales guidance based on slower-than-expected sales of the latest iPhones, pulling down the bellwether electronics sector, they said.
The weighted index on Friday closed down 109.91 points, or 1.16 percent, at 9,382.51, after moving between 9,319.28 and 9,427.24, on turnover of NT$105.98 billion (US$3.43 billion). That was a 3.5 percent plunge from a close of 9,727.41 on Dec. 28.
The market opened down 0.68 percent on follow-through selling from Thursday, when the TAIEX ended down 0.65 percent, reflecting a 2.83 percent decline in the Dow Jones Industrial Average and a nearly 10 percent plunge in Apple shares overnight, dealers said.
Selling later accelerated as investors dumped more of their holdings in large-cap tech stocks, especially those in the Apple supply chain, to push the broader market below 9,400 by the end of the session, they said.
“Apple’s cut in its sales forecast made many investors wary,” Concord Securities Co (康和證券) analyst Kerry Huang said. “The market is worried that Apple’s sales forecast downgrade is just a beginning and more tech firms will follow suit at a time of weak global demand.”
On Wednesday, Apple said that its first-quarter sales could total US$84 billion, down from an earlier estimate of US$89 billion to US$93 billion, citing weaker-than-expected demand in China.
“That’s why losses among big Apple concept stocks here continued from a session earlier, sending the TAIEX lower by more than 100 points,” Huang said on Friday. “I expect selling largely came from foreign institutional investors.”
Foreign institutional investors sold a net NT$9.29 billion in shares, Taiwan Stock