Taiwan shares end flat as TSMC gives up earlier gains

Taipei, May 20 (CNA) Shares in Taiwan closed little changed Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) saw its earlier gains eroded in the face of stiff resistance ahead of the critical NT$1,000 mark, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 2.20 points, or 0.01 percent, at 21,526.03 after moving between 21,517.10 and 21,746.56. Turnover totaled NT$272.34 billion (US$9.02 billion).

The market opened up 0.50 percent and rose to the day's high, up more than 220 points, on a technical rebound from a session earlier when the Taiex shed 1.46 percent, but profit taking followed and escalated with large cap tech stocks, including TSMC in focus, to reduce the initial gains by the end of the session, dealers said.

"Amid lingering concerns over uncertainties created by the Trump administration's tariff policies, many investors appeared reluctant to chase prices and locked in profits for the moment," Concord Securities analyst Kerry Huang said.

Despite the opening of Computex 2025 giving positive leads on artificial intelligence development, Huang said TSMC, the most heavily weighted local stock, still fell into negative territory, down 0.61 percent to close at NT$978.00, off a high of NT$994.00.

TSMC's fall from the day's high cost the Taiex about 130 points.

"The current thin turnover made it hard for TSMC to jump over high technical hurdles ahead of the NT$1,000 mark," Huang said.

Among other semiconductor stocks that also came off highs, smartphone IC designer MediaTek Inc. rose 0.38 percent to end at NT$1,315.00, while TSMC's IC assembly equipment supplier Scientech Corp. closed unchanged at NT$291.50.

IC packaging and testing services provider ASE Technology Holding Co. appeared more resilient, rising 1.41 percent to end at NT$144.00.

Also in the electronics sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. came off an early high of NT$158.50, closing steady at NT$154.00, while Quanta Computer Inc., another AI server supplier, rose 0.19 percent to end at NT$266.50.

Old economy stocks largely suffered profit taking in line with the broader market on tariff worries, Huang said.

Food brand Uni-President Enterprises Corp. fell 1.81 percent to close at NT$81.50, and cooking oil supplier Taisun Enterprise Co. ended down 0.23 percent at NT$21.45.

In addition, textile maker Far Eastern New Century Corp. lost 0.47 percent to close at NT$31.90, and Eclat Textile Co. shed 4.79 percent to end at NT$427.00.

After a recent strong showing on government efforts to develop renewable energy, green energy stocks closed mixed Tuesday with Luxe Green Energy Technology Co. up 1.93 percent to close at NT$29.05. J&V Energy Technology Co., however, fell 1.69 percent to end at NT$174.00.

In the financial sector, which outperformed the Taiex, up 0.52 percent, Cathay Financial Holding Co. rose 1.65 percent to close at NT$61.50, and Fubon Financial Holding Co. gained 1.13 percent to end at NT$80.70.

"The U.S. markets remain worth watching as the tariff polices could affect the economy and in turn move equity prices globally," Huang said. "Technically speaking, strong resistance lies ahead the 22,000 point mark for the Taiex."

According to the TWSE, foreign institutional investors bought a net NT$5.38 billion worth of shares on the main board Tuesday.