Taiwan shares up slightly ahead of TSMC investor conference

Taipei, July 17 (CNA) Shares in Taiwan closed slightly higher Thursday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) moved in a narrow rage ahead of an investor conference slated to open after the trading session, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 70.38 points, or 0.31 percent, at 23,113.28 after moving between 22,923.37 and 23,159.54. Turnover totaled NT$329.03 billion (US$11.18 billion).

"Before TSMC releases the real numbers for the second quarter and gives guidance for the third quarter, investors were cautious about trading," Cathay Futures Consultant analyst Tsai Ming-han said. "It was no surprise that the Taiex fell into consolidation mode throughout the session."

After the market closed, TSMC reported second quarter net profit that hit a new high of NT$398.27 billion, up 60.7 percent from a year earlier. Its investor conference was underway as of press time.

TSMC shares closed unchanged at NT$1,130.00, off a low of NT$1,115.00, with the electronics index up only 0.17 percent. "The stock faced high technical hurdles ahead of NT$1,160.00," Tsai said.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. lost 1.42 percent to end at NT$1,390.00, while TSMC's IC assembly equipment supplier Scientech Corp. rose 3.52 percent to close at NT$353.00, and application-specific integrated circuit (ASIC) designer AIchip Technologies Inc. gained 4.31 percent to end at NT$3,755.00.

Also in the tech sector, iPhone assembler and artificial intelligence server maker Hon Hai Precision Industry Co. rose 0.92 percent to close at NT$164.00, but Quanta Computer Inc., another AI server supplier, ended down 0.55 percent at NT$271.00.

"When TSMC moved in the doldrums, investors shifted their attention to select old economy stocks and the buying provided some support to the broader market," Tsai said. "Today, they parked money in raw material stocks which were market laggards."

Formosa Plastics Corp. surged 6.64 percent to close at NT$37.75, and Nan Ya Plastics Corp. jumped 5.41 percent to end at NT$29.25.

In addition, China Steel Corp., the largest steel maker in Taiwan, rose 2.39 percent to close at NT$19.25, and Chung Hung Steel Corp. added 2.53 percent to end at NT$14.20.

The financial sector lost 0.09 percent with Fubon Financial Holding Co. down 0.36 percent at NT$84.10, and Cathay Financial Holding Co. falling 0.63 percent to end at NT$63.10.

"Local investors should watch closely how TSMC's American depositary receipts react to its results and guidance after U.S. markets open, which is expected to move the Taiex tomorrow," Tsai said.

According to the TWSE, foreign institutional investors bought a net NT$307.79 million worth of shares on the main board Thursday.