Taiwan shares end up but gains capped

Taipei, Jan. 21 (CNA) Shares in Taiwan moved higher Tuesday after Donald Trump did not pledge new tariffs in his inauguration speech overnight as he had threatened previously, but gains were limited on reduced turnover, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended up 33.19 points, or 0.14 percent, at 23,300.01 after moving between 23,174.02 and 23,377.64. Turnover totaled NT$255.09 billion (US$7.79 billion), compared with NT$279.92 billion Monday.

The market opened down 0.33 points and eventually hit the day's low at 9:47 a.m. before rebounding and moving into positive territory.

But just as the Taiex seem poised to hit the day's high near the end of the session, it plummeted in the final minutes, capping the day's gains.

"Trump did not go through with his threat to raise tariffs on his first day, and that relieved the market to some extent," Concord Securities analyst Kerry Huang said.

"But the Taiex remained in consolidation with the Lunar New Year holiday looming as turnover shrank. Many investors were reluctant to chase prices for the time being," Huang said.

"There were fears that negative leads would emerge during the holiday."

Wednesday will be the local stock market's last trading day before the holiday. Trading will not resume until Feb. 3.

The electronics index edged up 0.03 percent at 1,302.62 after chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock in the local market, ended unchanged at NT$1,120.00.

Among other tech heavyweights, smartphone IC designer MediaTek Inc. rose 1.38 percent to close at NT$1,465.00, while IC packaging and testing services provider ASE Technology Holding Co. ended unchanged at NT$172.00.

Second to TSMC in terms of market value, iPhone assembler Hon Hai Precision Industry Co., which also rolls out artificial intelligence servers, rose 0.28 percent to close at NT$178.50, and Quanta Computer Inc., another AI server maker, ended up 0.75 percent at NT$269.00.

"Today, buying focused on the financial sector on hopes that financial holding companies will be more generous with cash dividends after their bottom lines improved," Huang said, referring to the 63.7 percent rise in the combined net profit of Taiwan's 14 financial holding companies in 2024.

"Bargain hunters also targeted cheap steel stocks, which had been hit hard recently," Huang said.

The financial sector rose 0.96 percent. Fubon Financial Holding Co. rose 1.10 percent to close at NT$91.50, and Cathay Financial Holding Co. gained 1.23 percent to end at NT$65.90.

In the steel sector, which rose 1.62 percent, China Steel Corp., the largest steel maker in Taiwan, gained 2.81 percent to close at NT$20.10, and Ta Chen Stainless Pipe Co. added 1.95 percent to end at NT$33.90.

The petrochemical sector, however, lost 0.27 percent on a fall in international crude oil prices after Trump announced he would boost oil and gas production.

Formosa Plastics Corp. shed 2.44 percent to close at NT$36.00, and Formosa Chemicals & Fibre Corp. ended down 1.77 percent at NT$27.80.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$259 million in shares on the exchange Tuesday.