Taiwan shares end up on rotational buying

Taipei, July 11 (CNA) Shares in Taiwan closed higher Friday as rotational buying escalated, helping the broader market recoup its losses earlier in the session at a time of lingering concerns over the United States' arbitrary tariff threats, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended up 57.78 points, or 0.25 percent, at 22,751.03 after moving in a relatively narrow range between 22,601.95 and 22,770.01. Turnover totaled NT$327.13 billion (US$11.19 billion).

"While TSMC (Taiwan Semiconductor Manufacturing Co.) showed consolidation, buying rotated to other tech stocks amid optimism toward artificial intelligence development, helping the broader market offset previous weakness caused by tariff worries," Hua Nan Securities analyst Kevin Su said.

TSMC, the most heavily weighted stock in Taiwan, closed unchanged at NT$1,100.00 after coming off a low of NT$1,070.00.

TSMC's suppliers got a boost from rotational buying, however, with cleanroom engineering solution provider United Integrated Services Co. rising 2.66 percent to end at NT$734.00, and system solution supplier Marketech International Corp. soaring 10 percent, the maximum daily increase, to close at NT$204.00.

Also in the tech sector, smartphone IC designer MediaTek Inc., rose 1.43 percent to end at NT$1,420.00 after its consolidated sales for June hit their highest monthly level in in 33 months, and AI PC brand Acer Inc. gained 2.20 percent to close at NT$30.25.

At the same time, iPhone assembler and AI server maker Hon Hai Precision Industry Co. ended unchanged at NT$161.50.

Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., rose 4.34 percent to close at NT$2,285.00, though the company reported a large foreign exchange loss for the second quarter, citing a stronger Taiwan dollar.

"Judging from Largan's movement, I think many investors felt the worst of forex losses was over," Su said. "Rotational buying also spread to non-tech stocks throughout the session. Today, the financial sector got a boost on reduced concerns over forex losses."

In the financial sector, which rose 0.80 percent, Yuanta Financial Holding Co. rose 2.21 percent to close at NT$32.40, Taishin Financial Holding Co. surged 8.28 percent to end at NT$18.30, and Changhwa Commercial Bank added 2.01 percent to close at NT$20.30.

Cathay Financial Holding Co. was one of the few financial stocks to lose ground, ending down 0.32 percent at NT$62.50.

As for the old economy sector, Su said the electric machinery index rose 1.36 percent on hopes of growing demand for equipment for reconstruction after Typhoon Nanas swept Taiwan early this week.

Shihlin Electric & Engineering Corp. rose 4.72 percent to close at NT$188.50, and Allis Electric Co. gained 3.88 percent to end at NT$107.00.

Elsewhere in the old economy sector, Eclat Textile Co. dropped 1.12 percent to close at NT$396.00, while rival Makalot Industrial Co. rose 0.1 percent to end at NT$250.00.

"Investors in Taiwan are still waiting for a conclusion of tariff talks between Taipei and the U.S. That has capped the upturn of TSMC, and it will not be easy for the Taiex to jump over high technical hurdles ahead of 22,842 points, an intraday high on July 4," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$17.06 billion in shares on the market Friday.