Taipei, May 8 (CNA) Shares in Taiwan closed slightly higher Wednesday after the market consolidated in the wake of a lackluster performance on American markets overnight, dealers said.
The Taiex, the Taiwan Stock Exchange’s benchmark weighted index, ended up 46.98 points, or 0.23 percent, at the day’s high of 20,700.51 after hitting a low of 20,547.48. Turnover totaled NT$419.01 trillion (US$12.93 trillion).
The market opened down 0.24 percent and selling in the bellwether electronics sector increased to push down the Taiex to the day’s low at around 9:30 am following a 0.10 percent decline in the tech-heavy Nasdaq and a 0.74 percent drop in the Philadelphia Semiconductor Index in the United States on Tuesday, dealers said.
Buying emerged later on, however, particularly towards the end of the session, led by large cap tech stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), to push the broader market into positive territory at day’s end, dealers added.
TSMC, the most heavily weighted stock in the local market, rose 0.25 percent to close at NT$802.00, off a low of NT$792.00. Led by TSMC, the electronics index and semiconductor sub-index ended at the day’s high up 0.42 percent and 0.47 percent, respectively.
“As tech stocks on US markets are consolidating, their counterparts in Taiwan followed suit,” Cathay Futures Consultant analyst Tsai Ming-han said.
“That was the case with TSMC. While its fundamentals remain sound, the room for further gains in its shares could be limited technically,” Tsai said, referring to stiff technical resistance ahead of NT$812.00, an intraday high last seen on April 9.
Among other major semiconductor stocks, United Microelectronics Corp., a smaller contract chipmaker, rose 0.58 percent to end at NT$51.90, while Novatek Microelectronics Corp., UMC’s display drive IC design subsidiary, lost 5.47 percent to close at NT$605.00.
IC packaging and testing services provider ASE Technology Holding Co. fell 0.33 percent to end at NT$150.50.
Amid expectations that it will announce a new cooperation deal with artificial intelligence IC designer Nvidia Corp. at Computex Taipei in June, smartphone IC designer MediaTek Inc. rose 4.78 percent to close at NT$1,095.00.
MediaTek unveiled on Tuesday its latest flagship mobile Dimensity 9300+ chip, which it said uses TSMC’s advanced 4 nanometer process and will accelerate on-device generative AI processing.
Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co., which also rolls out AI servers, ended unchanged at NT$169.50, while Quanta Computer Inc., another AI server maker, rose 2.43 percent to close at NT$273.50.
PC brand Asustek Computer Inc. took a break, falling 0.33 percent to end at NT$458.50, after rising 2.56 percent a session earlier.
“Rotational buying remained active today with select old economy industries as beneficiaries,” Tsai said.
“Electric machinery stocks returned to the spotlight as many of them reported an increase in sales at a time of government investment to improve electricity grid networks around Taiwan.”
In the electric machinery industry, which rose 2.56 percent, Fortune Electric Co. soared 8.69 percent to close at NT$888.00, and Shihlin Electric & Engineering Corp. closed 3.86 percent higher to end at NT$296.00.
Rexon Industrial Corp. added 3.14 percent to close at NT$52.60, and Chung-Hsin Electric & Machinery Manufacturing Corp. gained 2.22 percent to end at NT$184.00.
The construction industry, on the other hand, saw its losses extended from a session earlier, falling 2.90 percent, as investors continued to lock in gains built in recent sessions.
Cathay Real Estate Development Co. fell 4.38 percent to close at NT$36.00, and Kindom Development Co. shed 5.52 percent to end at NT$58.20.
Elsewhere among old economy stocks, China Steel Corp., the largest steel maker in Taiwan, lost 0.60 percent to close at NT$24.75, and Tung Ho Steel Corp. dropped 1.24 percent to end at NT$71.70.
The financial sector appeared mixed, edging up 0.04 percent. CTBC Financial Holding Co. closed 1.11 percent higher at NT$36.40, but Fubon Financial Holding Co. and Cathay Financial Holding Co. finished unchanged at NT$69.60 and NT$50.90, respectively.
“It’s possible that buying will rotate to the financial sector soon as many firms have proposed attractive dividends,” Tsai said.
“Such rotational buying is expected to continue to push up the Taiex, but in the face of the high technical hurdles ahead of 20,883 points, the gains will be capped.”
The level of 20,883 points is the highest the Taiex has ever hit during a trading session, set on April 10.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$2.39 billion in shares on the market Wednesday.
(By Frances Huang)
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