Taipei, Dec. 24 (CNA) Shares in Taiwan closed slightly higher Tuesday despite earlier gains amid continuing uncertainty following the reelection of Donald Trump as U.S. president.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 15.7 points, or 0.07 percent, at 23,120.24, off a high of 23,326.25. Turnover was NT$338.28 billion (US$10.34 billion), compared with NT$361.21 billion a session earlier.
The market opened up 0.68 percent and soon rose by 221 points, the day's high, led by electronics heavyweights, after investors took cues from a 0.98 percent increase on the tech-heavy Nasdaq index in the United States overnight.
However, profit taking followed as investors cut holdings in large-cap tech stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) and iPhone assembler Hon Hai Precision Industry.
"After yesterday's (2.64 percent) rally, many investors took advantage of the gains to pocket profits," Hua Nan Securities analyst Kevin Su said. "Trump's possible tariffs have led to uncertainty in the market."
TSMC, the most heavily weighted stock in the local market, closed unchanged at NT$1,080.00 after hitting a high of NT$1,095.00, while Hon Hai, second to TSMC in terms of market value, also ended flat at NT$185.50, following a high of NT$187.50.
In addition, smartphone IC designer MediaTek Inc. closed down 0.35 percent at NT$1,405.00, off a high of NT$1,430.00.
"TSMC encountered high technical hurdles ahead of its historical intraday high of NT$1,100.00 (seen Oct. 18). It was no surprise that gains were eroded," Su said.
Unlike TSMC, which dominates the high-end chip market, companies specializing in mature IC processes saw strong buying interest after the Biden administration launched a trade probe into Chinese-made "legacy" semiconductors, Su said. Among them, United Microelectronics Corp. rose 4.05 percent to close at NT$36.00.
"While major tech stocks lagged, investors shifted to old-economy shares," Su said. "Shipping stocks gained traction on hopes that rising freight rates would continue, driven by foreign buyers building inventories ahead of potential tariff hikes under Trump."
With the transportation index up 0.86 percent, Evergreen Marine Corp., the largest cargo shipper in Taiwan, rose 1.75 percent to close at NT$231.00 and U-Ming Marine Transport Corp., a bulk cargo shipper, ended up 2.97 percent at NT$55.40.
Elsewhere in the old economy sector, Formosa Plastics Corp. rose 0.81 percent to close at NT$37.55 and Nan Ya Plastics Corp. gained 0.80 percent to end at NT$31.35.
In the financial sector, Fubon Financial Holding Co. rose 0.44 percent to close at NT$91.80, while Cathay Financial Holding Co. lost 0.14 percent to end at NT$68.90.
"Turnover fell today as many foreign institutional investors were away for the holidays," Su said. "Trading is expected to slow further tomorrow, on Christmas Day."
According to the TWSE, foreign institutional investors bought a net NT$13.96 billion worth of shares on the main board Tuesday, compared with NT$39.43 billion Monday.
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