Shares for several Taiwanese food companies fell by 3% to 5% on Wednesday, after China imposed an import ban on their products. The companies affected include AGV Products Corporation, Hunya Foods and Taisun Enterprise. The sanctions came just before the Taiwan visit by U.S. House Speaker Nancy Pelosi, and Taiwan officials have said they believe the bans are politically motivated. Let’s hear from an analyst.
The shares of several of the affected food companies were impacted. I think that the market has slowly become accustomed to saber-rattling. We’ve seen military planes approach over and over again, and the market stays pretty much unaffected. But now everyone is more worried, as the sanctions could affect company profits.
Taiwan shares hit a low point of 14,673 points during intraday trading on Wednesday, but gains in the tech sector countered the fall. TSMC shares went up NT$9 to finish above NT$500, with other tech stocks such as United Microelectronics, MediaTek and Largan Precision also making gains. The market ended closing up slightly by 29 points, at 14,777. Turnover stood at a reduced NT$174.8 billion, with institutional investors selling a net NT$6.249 billion.