Taiwan shares end down but come off low as TSMC rebounds

Taipei, Sept. 1 (CNA) Shares in Taiwan closed lower Monday but bounced off early losses to hold above the 24,000-point mark, as late-session bargain hunting in Taiwan Semiconductor Manufacturing Co. (TSMC) helped the broader market recover, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 161.37 points, or 0.67 percent, at 24,071.73, after moving between 23,885.41 and 24,312.83. Turnover totaled NT$509.08 billion (US$16.63 billion).

"The local main board initially fell below 24,000 points, dropping almost 350 points at the day's low, as investors seized on the latest U.S. losses as an excuse to pocket profits," said Adam Lin, an analyst with Moore Securities Investment Consulting.

Lin was referring to Friday's declines of 0.64 percent on the S&P 500 and 1.15 percent on the Nasdaq following the release of the latest inflation data.

"Fortunately, bargain hunters picked up TSMC in the late session to give a boost to the broader market," Lin said. "TSMC served as an anchor to the semiconductor index as well as the Taiex."

TSMC, the most heavily weighted stock in the market, rose 0.43 percent to NT$1,165. Late buying in the stock helped the Taiex regain about 40 points.

Among other semiconductor stocks, ASE Technology Holding Co. gained 3.31 percent to NT$156.00, while Global Unichip Corp., TSMC's ASIC design subsidiary, added 0.38 percent to NT$1,335.00.

MediaTek Inc. lost 0.73 percent to NT$1,360.00 but still rebounded from an intraday low of NT$1,350.00.

Selling was heavier in AI hardware developers, with AI server maker Quanta Computer Inc. down 2.48 percent at NT$256.00 and power management solution supplier Delta Electronics Inc. down 3.23 percent at NT$688.00.

Bucking the downturn, HTC Corp. climbed 3.55 percent to NT$72.90 after strong preorders for its new Vive Eagle AI glasses between Aug. 14 and 31, which went on sale Monday.

"Another bright spot today was that financial heavyweights outperformed the broader market," Lin said. "I suspect local investors stood on the buy side, including government-led funds."

Financial stocks also provided support, with the sector index up 0.94 percent. Cathay Financial Holding Co. gained 0.72 percent to NT$84.50 and Mega Financial Holding Co. rose 1.87 percent to NT$40.80.

In the old economy sector, which largely moved in weakness, Shihlin Electric & Engineering Corp. lost 4.74 percent to close at NT$191.00, and Fortune Electric Co. shed 4.02 percent to end at NT$621.00.

After recent strong gains, "military concept" stocks saw profit taking, with Aerospace Industrial Development Corp. down 4.49 percent at NT$59.60 and drone maker Thunder Tiger Corp. down 6.18 percent at NT$159.50.

"Before a U.S. tariff on semiconductors is finalized, it is possible for the Taiex to continue consolidating," Lin said.

According to the TWSE, foreign institutional investors sold a net NT$7.83 billion worth of shares on the main board on Monday.