Taiwan shares end up led by TSMC after U.S. rally

Taipei, June 17 (CNA) Shares in Taiwan rose Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) led the broader market higher in the wake of a rally among tech stocks in the United States overnight, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index, ended up 161.69 points, or 0.73 percent, at 22,211.59 after moving between 22,118.46 and 22,331.69. Turnover totaled NT$362.26 billion (US$12.31 billion).

"Iran reportedly is seeking to negotiate a ceasefire with Israel, which has eased tensions in the Middle East and prompted investors at home and abroad to trade," Hua Nan Securities analyst Kevin Su said.

The Wall Street Journal cited diplomats as saying on Monday that Iran has showed signs that it seeks an end to hostilities with Israel and a resumption of negotiations on its nuclear program.

"In Taiwan, interest in TSMC resumed today after the gains seen by semiconductor stocks on the U.S. market overnight," Su said, referring to a 3.03 percent spike in the Philadelphia Semiconductor Index.

After its American depositary receipts (ADRs) rose 2.17 percent, TSMC shares rose 1.95 percent in Taipei to close at NT$1,045.00. The stock contributed about 160 points to the Taiex's rise and helped the electronics index rise 1.10 percent.

"Due to a stronger Taiwan dollar, which raised concerns over foreign exchange losses, Taiwan's semiconductor stocks still lagged behind their American counterparts. They were playing catch-up today," Su said.

Among other semiconductor stocks, TSMC's IC assembly equipment supplier Scientech Corp. gained 3.77 percent to end at NT$330.00, and application specific integrated circuit (ASIC) designer Alchip Technologies Ltd. soared 6.83 percent to close at NT$2,815.00.

In addition, smartphone IC designer MediaTek Inc. gained 1.59 percent to end at NT$1,275.00, and IC packaging and testing services provider ASE Technology Holding Co. added 2.07 percent to close at NT$148.00.

Underperforming the broader market, iPhone assembler and artificial intelligence maker Hon Hai Precision Industry Co. ended unchanged at NT$155.00.

"As buying focused on the electronics sector, non-tech industries appeared mixed," Su said. "Today, petrochemical stocks suffered steep losses after a plunge in international crude oil prices on hopes of a ceasefire in the Middle East," Su said.

With the petrochemical index falling 3.91 percent, Formosa Plastics Corp. shed 4.00 percent to close at NT$36.00, and Nan Ya Plastics Corp. lost 5.12 percent to end at NT$28.70.In addition, Formosa Chemicals & Fibre Corp. dropped 4.40 percent to close at NT$23.90, and Formosa Petrochemical Corp. ended down 3.80 percent at NT$38.00.

Meanwhile, optimism over government investment in Taiwan's electricity grid network led the electric machinery index to rise 0.65 percent.

Fortune Electric Co. closed 4.36 percent higher at NT$551.00, and Chung-Hsin Electric & Machinery Manufacturing Corp. gained 1.23 percent to end at NT$164.00.

The financial sector also bucked the Taiex's uptrend, falling 0.26 percent. Cathay Financial Holding Co. shed 2.38 percent to close at NT$65.70, and Fubon Financial Holding Co. ended down 0.23 percent at NT$85.80.

"After today's gains, the Taiex is expected to see high technical hurdles ahead of 22,300 points," Su said. "Market sentiment also remains bothered by whether talks with the U.S. will reduce the reciprocal tariffs [facing Taiwan]."

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$5.41 billion in shares on the market Tuesday.