Led by TSMC, Taiwan shares end at new high

Taipei, May 13 (CNA) Shares in Taiwan closed at a new high Monday after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) moved higher following a strong April sales report, dealers said.

Shipping stocks also steamed ahead to provide further momentum to the broader market, but the overall gains were capped over lingering concerns over when the U.S. Federal Reserve will start a rate cut cycle, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended up 148.87 points, or 0.72 percent, at 20,857.71 after moving between 20,816.42 and 20,933.28. Turnover totaled NT$426.4 billion (US$13.14 billion).

The market opened up 0.95 percent on immediate gains by TSMC and container cargo shipping stocks and rose to the Taiex's historical intraday high just minutes later.

Some investors began trimming their holdings, however, and trading remained in a relatively narrow range at a slightly lower level the rest of the session, dealers said.

TSMC

TSMC, the most heavily weighted stock on the local market, rose 2.12 percent to close at NT$819.00, contributing about 140 points alone to the Taiex's rise.

It also contributed to a 1.00 percent gain in the electronics index and a 1.66 percent gain in semiconductor sub-index.

"As the top stock in Taiwan, TSMC again served as an anchor of the market, leading the Taiex to a record high after buying was sparked by its impressive April sales report," Cathay Futures Consultant analyst Tsai Ming-han said.

"Its cash dividend plan also prompted investors at home and abroad to buy."

TSMC's American depositary receipts soared 4.53 percent on Friday after the April sales report and the cash dividend payout plan, dealers said.

TSMC reported April sales of NT$236.02 billion, up 59.6 percent from a year earlier and up 20.9 percent from a month earlier. It was the second-highest monthly sales total in company history.

The chipmaker also announced on Friday that it will pay a cash dividend of NT$4.0 per share to shareholders for its earnings in the first quarter of 2024, up from a NT$3.50 payout for fourth quarter earnings.

Though TSMC showed strong gains Monday, other large-cap tech stocks were mixed, Tsai said.

Other tech sctocks

"The U.S. markets were in consolidation mode as investors remained concerned about the timing of a rate cut by the Fed as inflation remains sticky. It was no surprise that the Taiex failed to sustain its intraday all-time high today," Tsai said.

Tsai said investors were affected by remarks made by Federal Reserve Governor Michelle Bowman, who said on Friday that she expected high interest rates to continue "for a bit longer."

Among other large-cap tech stocks, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, ended unchanged at NT$169.50.

United Microelectronics Corp., a smaller contract chipmaker, rose 0.38 percent to close at NT$52.40 but IC packaging and testing services provider ASE Technology Holding Co. lost 2.31 percent to end at NT$148.00.

Smartphone IC designer MediaTek Inc. rose 1.83 percent to close at NT$1,115.00, but Alchip Technologies Ltd., an application specific integrated circuit (ASIC) designer, shed 1.18 percent to end at NT$2,520.00.

Also in the electronics sector, artificial intelligence server maker Quanta Computer Inc. gained 1.48 percent to close at NT$274.50, while rival Wistron Corp. lost 2.63 percent to end at NT$111.00.

Cargo shippers

"While interest in non-tech stocks was uneven, the transportation industry stood out, led by large container cargo shippers benefiting from an increase in freight rates," Tsai said.

With the Shanghai Containerized Freight Index soaring over 18 percent last week, the transportation index rose 3.74 percent Monday.

Evergreen Marine Corp., the largest container shipper in Taiwan, rose 6.20 percent to close at NT$205.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. surged 10 percent, the maximum daily increase, to end at NT$66.60 and NT$70.10, respectively.

On the bulk cargo shipping front, Sincere Navigation Corp. rose 2.73 percent to close at NT$28.20, while U-Ming Marine Transport Corp. lost 1.79 percent to end at NT$60.20.

Electric machinery, finacial sectors

The electric machinery sector moved lower, sliding 2.97 percent as investors continued to lock in the gains they had built in recent sessions, dealers said.

Shihlin Electric & Engineering Corp. plunged 8.29 percent to close at NT$260.00, Fortune Electric Co. shed 6.02 percent to end at NT$750.00, and Chung-Hsin Electric & Machinery Manufacturing Corp. closed down 5.90 percent at NT$167.50.

But Rexon Industrial Corp. bucked the downturn, rising 3.90 percent to end at NT$47.90.

In the financial sector, which lost 0.48 percent, CTBC Financial Holding Co. shed 2.54 percent to close at NT$36.50, Cathay Financial Holding Co. dropped 0.72 percent to end at NT$55.10, and Fubon Financial Holding Co. closed down 0.42 percent at NT$71.50.

Mega Financial Holding Co. rose 0.24 percent to end at NT$41.50.

"TSMC saw stiff resistance ahead of NT$820.00," Tsai said. "But if the stock jumps over that hurdle, the Taiex could challenge another new high."

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$15.89 billion in shares on the market Monday.

Related News

May 13: Taiex market cap tops NT$66 trillion; average 2024 earnings hit NT$740,000

May 13: TWSE-listed firms report over 18% year-on-year sales rise in April