Selling of shares in chipmakers and other Apple-linked companies continued at a slower pace in early Asia trading on Monday after tech stocks took a hit late last week on fears of weakening iPhone sales.
Taiwan Semiconductor Manufacturing Co, which helped spark a sell-off in Apple shares on Thursday after it flagged lower than expected forecast sales for its smartphone division, was down 1.1 per cent after the market opened in Taipei, and was on track to close at its lowest point in 2018.
Apple contract manufacturer Hon Hai was down 0.4 per cent, at its lowest since January 2017, while the tech-heavy FTSE TWSE Taiwan 50 index was off 0.3 per cent.
Among the South Korean chipmakers, Samsung Electronics was up 0.4 per cent while SK Hynix was off 0.1 per cent.
The moves came after signs of slower than expected iPhone demand spooked Apple investors late last week.
However, in a research note released on Monday, JP Morgan Asset Management said “global technology remains the best performing sector of the year in global equity markets” despite “recent jitters”.
“FAANG [Facebook, Amazon, Apple, Netflix and Google] stocks may have retreated from their 2018 highs, but are still up almost 6% year-to-date compared with the MSCI ACWI Index, which is roughly flat,” the bank said.
More than $60b, or 7 per cent, was wiped off Apple’s market capitalisation in two days after TSMC narrowed its second quarter revenue forecast amid demand for the mobile sector and Morgan Stanley cut its forecasts for the tech giant’s shipments.
TSMC, which supplies the core processor chips that power iPhones, shed more than 6 per cent on Friday after it updated its sales outlook and signalled higher annual capex in 2018.
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