Taiwan shares end up as electronics, financial stocks rebound

Taipei, June 18 (CNA) Shares in Taiwan closed higher Wednesday as the bellwether electronics and financial sectors regained their footing, while market sentiment remained alert to military conflicts between Iran and Israel, dealers said.

The Taiex, the Taiwan Stock Exchange's weighted index, ended up 145.14 points, or 0.65 percent, at 22,356.73 after moving between 22,104.68 and 22,370.25. Turnover totaled NT$382.01 billion (US$12.94 billion).

The Taiex quickly reversed an initial downturn, led by large cap semiconductor stocks, including chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), and financial heavyweights, vaulting the index above the 240-day moving average of around 22,290, dealers said.

"Judging by today's movement, many investors appeared to remain upbeat about the local semiconductor sector in the artificial intelligence era and continued to increase their holdings, in particular in TSMC," Concord Securities analyst Kerry Huang said.

"Many investors are still worried about the ongoing conflict in the Middle East," Huang said, referring to losses on United States markets overnight.

"But a rebound in U.S. stock futures provided some comfort to the local market, helping the Taiex jump over technical hurdles ahead of the 240-day moving average."

TSMC, the most heavily weighted stock in Taiwan, rose 0.96 percent to close at NT$1,055.00, off a low of NT$1,030.00, helping the electronics index rise 0.73 percent.

Other major semiconductor stocks also attracted interest, with smartphone IC designer MediaTek Inc. up 1.78 percent to end at NT$1,285.00, and United Microelectronics Corp., a smaller contract chipmaker, up 1.68 percent to close at NT$48.30.

But IC packaging and testing services provider ASE Technology Holding Co. ended unchanged at NT$148.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 0.65 percent to close at NT$156.00, while Quanta Computer Inc., another AI server supplier, ended unchanged at NT$283.00.

"Interest in financial stocks appeared solid today amid continued optimism toward their high cash dividend payouts," Huang said.

With the financial sector up 0.90 percent, Cathay Financial Holding Co. rose 2.44 percent to close at NT$67.30, and Fubon Financial Holding Co. gained 1.86 percent to end at NT$87.40.

Old economy industries closed mixed.

Shihlin Electric & Engineering Corp. rose 1.08 percent to close at NT$187.40, and Fortune Electric Co. soared 7.99 percent to end at NT$595.00 on strong May sales reports.

Amid continued worries over a global supply glut, however, Formosa Plastics Corp. fell 1.25 percent to close at NT$35.55, and Nan Ya Plastics Corp. dropped 0.87 percent to end at NT$28.45.

"In addition to the rising tensions in the Middle East, investors should pay close attention to the conclusion of the U.S. Federal Reserve's two-day policymaking meeting and its comments later in the day," Huang said.

"Before Taiwan's tariff talks with the United States come to an end, it is possible that the Taiex will move up and down around the 240-day moving average in the short term," he said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$11.74 billion in shares on the market Wednesday.