Taiwan shares end up as TSMC hits intraday high

Taipei, Aug. 11 (CNA) Shares in Taiwan closed moderately higher Monday led by the bellwether electronics sector as investors took their cue from a rally by tech stocks on U.S. markets at the end of last week, dealers said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) hit a historical high amid optimism that the company will secure an exemption from the U.S. tariff on semiconductors before its gains were eroded by the end of the session, dealers added.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 114.24 points, or 0.48 percent, at 24,135.50 after moving between 23,887.25 and 24,249.05. Turnover totaled NT$426.22 billion (US$14.25 billion).

"The gains posted by U.S. tech stocks continued to dictate the local main board," Mega International Investment services analyst Alex Huang said, referring to a 0.98 percent increase on the tech-heavy Nasdaq index and a 0.79 percent rise on the Philadelphia Semiconductor Index on Friday.

The Taiex started in weakness but TSMC saw buying accelerate to help the broader market climb out the doldrums, Huang said. TSMC, the most heavily weighted local stock, rose 0.45 percent to close at NT$1,180.00 after hitting a historical intraday high of NT$1,195.00.

"Buying in TSMC reflected an upbeat mood about a possible exemption from a U.S. tariff on semiconductors due to the company's massive investments in Arizona," Huang said. "The stock has seen tariff interruptions eased with market attention shifting back to its sound fundamentals."

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. rose 0.37 percent to end at NT$1,355.00, while memory chip supplier Nanya Technology Corp. lost 0.34 percent to close at NT$43.80.

iPhone assembler Hon Hai Precision Industry Co., next to TSMC in terms of market cap, also moved higher by 1.80 percent to end at NT$198.00. "The gains largely reflected Apple Inc.'s exclusion from U.S. tariffs for its products assembled overseas and Hon Hai is one of the largest beneficiaries."

Hon Hai's buying spread to its subsidiary with printed circuit board maker Zhen Ding Technology Holding Ltd. soaring 10 percent, the maximum daily increase, to close at NT$141.50, and metal casing supplier Foxconn Technology Co. also surging 10 percent to end at NT$76.30.

Huang said as buying focused on tech stocks, old economy industries were largely left behind. "But, select petrochemical heavyweights were an exception as many investors think their operations will bottom out," he said.

With the petrochemical industry up 4.52 percent, Nan Ya Plastics Corp. rose 8.29 percent to close at NT$39.85, Formosa Chemicals & Fibre Corp. gained 4.48 percent to end at NT$28.00, Formosa Plastics Corp. added 2.40 percent to close at NT$38.45, and Formosa Petrochemical Corp. ended up 1.40 percent at NT$39.80.

On the other hand, textile brand Far Eastern New Century Corp. lost 3.65 percent to close at NT$27.75, and Eclat Textile Co. fell 1.97 percent to end at NT$374.00. In addition, food brand Uni-President Enterprises Corp. dropped 0.51 percent to close at NT$77.80, while chicken supplier Charoen Pokphand Enterprise (Taiwan) Co. rose 1.69 percent to end at NT$120.50.

In the financial sector, which rose 0.37 percent, Fubon Financial Holding Co. added 1.17 percent to close at NT$86.20, and Cathay Financial Holding Co. gained 1.11 percent to end at NT$63.90.

According to the TWSE, foreign institutional investors sold a net NT$3.99 billion worth of shares on the main board Monday.