Taiwan stocks fell 1.81 percent on Friday, the worst performing market in the region, with smartphone maker HTC Corp falling by the maximum allowed in a day after brokerage Goldman Sachs removed the company from its conviction list. Fund managers expect selling pressure on Taiwan shares from foreign investors could continue next week if US shares kept on their downtrend. Foreign investors account for about one-third of all Taiwan stock trading.
"US shares have been retreating since the beginning of June, Korean shares have come down 7 percent from their peak, only Taiwan shares were still hovering around high level," said Hua Nan Securities Chairman David Chu. "If US shares extend their downward trend with no sign of a rebound next week, foreign investors will likely sell Taiwan shares heavily."
The main TAIEX index closed down 163.12 points at 8,837.82, after opening 0.46 percent higher. Chu forecast the TAIEX index to trade around the 8,700 level in the near term. Foreign investors have bought T$16.83 billion of Taiwan shares so far this month to Thursday. Friday's figures are due later in the day.
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