Taiwan shares end up as TSMC stages rebound

Taipei, Oct. 1 (CNA) Shares in Taiwan moved higher by more than 160 points to close above the 60-day moving average of 22,272 points Tuesday following a technical rebound by large-cap tech stocks, in particular, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), from a session earlier.

However, turnover was limited as many investors stayed on the sidelines with the approaching Typhoon Krathon likely to force the stock market to shut down on Wednesday, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 165.85 points, or 0.75 percent, at 22,390.39 after moving between 22,311.33 and 22,446.86. Turnover totaled NT$279.37 billion (US$8.77 billion).

The market opened up 0.47 percent and buying pushed up the Taiex by 222.32 points to the day's high in the early morning session. TSMC and other tech heavyweights, such as smartphone IC designer MediaTek Inc., helped the broader market recover from Monday's weakness -- when the index plunged 598.25 points or 2.62 percent.

The upturn continued into the end of the session but the steep losses in the previous session were not all recouped.

"Judging from the low turnover, I think investors remained reluctant to buy at the moment because the stock market could be closed tomorrow because of Typhoon Krathon," Moore Securities Investment Consulting analyst Adam Lin said. "They feared possible negative leads will emerge overseas during the local market shutdown."

The storm is strengthening and is forecast to land in southern Taiwan on Wednesday before moving north. It is set to impact the whole country.

"However, the silver lining was that the Taiex closed above the 60-day moving average today, meaning the board is technically healthy. The boost was mainly due to stocks like TSMC and MediaTek, which were sold en masse yesterday by passive mutual funds, Lin said.

After falling 4.30 percent on Monday, TSMC, the most heavily weighted stock in the local market, rose 1.57 percent to close at NT$972.00, coming off a high of NT$977.00.

TSMC's gains contributed about 120 points to the Taiex rise on Tuesday, and sent the electronics index and semiconductor sub-index up by 1.11 percent and 1.36 percent, respectively.

MediaTek, the No. 3 stock in terms of market value, gained 2.98 percent to end at NT$1,210.00 after hitting a high of NT$1,230.00. The stock tumbled 6.75 percent on Monday.

Regarding other semiconductor stocks, IC packaging and testing services provider ASE Technology Holding Co. rose 0.33 percent to close at NT$151.50. United Microelectronics Corp., a smaller contract chipmaker, lost 0.19 percent to end at NT$53.70.

Bargain hunters also picked up other large-cap tech stocks outside the semiconductor industry, including artificial intelligence server maker Quanta Computer Inc., which rose 1.52 percent to close at NT$268.00 and power management solution supplier Delta Electronics Inc., which gained 1.05 percent to end at NT$384.50.

Bucking the uptrend, iPhone assembler Hon Hai Precision Industry Co., second to TSMC in terms of market value, lost 0.27 percent to close at NT$187.00.

In the transportation industry, which rose 1.29 percent, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, rose 1.74 percent to close at NT$204.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. also gained 2.17 percent and 1.22 percent, respectively, to end at NT$70.50 and NT$99.20.

"After the decision to raise electricity tariffs yesterday, investors rushed to buy renewable energy stocks today," Lin said, referring to the average hike of 12.5 percent in power rates for industrial users imposed by Taiwan Power Co.

Of those green energy stocks, United Renewable Energy Co. rose 1.98 percent to close at NT$12.85, and Luxe Green Energy Technology Co. added 1.01 percent to end at NT$29.90.

Elsewhere in the old economy sector, Shihlin Electric & Engineering Corp. gained 1.58 percent to close at NT$224.50, and Fortune Electric Co. rose 3.18 percent to end at NT$649.00. In addition, food brand Uni-President Enterprises Corp. rose 2.06 percent to close at NT$89.00, while Wei Chuan Foods Corp. lost 0.55 percent to end at NT$18.20.

In the financial sector, which rose 0.08 percent, Fubon Financial Holding Co. rose 0.33 percent to close at NT$90.70, and Cathay Financial Holding Co. added 0.30 percent to end at NT$66.70, while Shin Kong Financial Holding Co. dropped 1.24 percent to close at NT$11.90.

"I expect turnover on the local main board will continue to stay low before Washington releases its nonfarm payroll data on Friday," Lin said. "So, the Taiex could move around 200 points up or down around the 60-day moving average."

Despite the Taiex gains, foreign institutional investors sold a net NT$13.49 billion worth of shares on the main board Tuesday, according to the TWSE.