Taiwan shares end at new high ahead of SEMICON opening

Taipei, Sept. 8 (CNA) Shares in Taiwan closed at a new high Monday with buying focused on the semiconductor sector as investors stayed upbeat about global demand before the opening of SEMICON Taiwan 2025 on Wednesday, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 52.80 points, or 0.22 percent, at 24,547.38 after moving between 24,547.38 and 24,729.96. Turnover totaled NT$433.56 billion (US$14.21 billion).

The intraday high was also the highest in history before the index saw part of its earlier gains eroded by the end of the session.

"The global semiconductor industry saw continued support from artificial intelligence applications (before SEMICON opens)," Concord Capital Management analyst Lu Chin-wei said.

SEMICON Taiwan 2025, scheduled to open on Wednesday in Taipei, will feature a wide range of AI chips, advanced IC assembly and testing services and fan-out panel-level packaging (FOPLP) technologies.

"Today, buying rotated to other semiconductor heavyweights, such as ASE Technology Holding Co. as the gains posted by TSMC (Taiwan Semiconductor Manufacturing Co.) were erased," Lu said.

IC packaging and testing services provider ASE Technology soared 10 percent, the maximum daily increase, to close at NT$171.50, but contract chipmaker TSMC, the most heavily weighted local stock, ended unchanged at NT$1,180.00, off a high of MT$1,195.00.

Shares in King Yuan Electronics Co., an IC testing firm, rose 5.62 percent to close at NT$169.00, and memory chip supplier Nanya Technology Corp. ended up 0.94 percent at NT$53.50.

Among AI related stocks, Asia Vital Components Co., a provider of cooling solutions to AI gadgets, rose 2.12 percent to NT$964.00, while iPhone assembler and AI server maker Hon Hai Precision Industry Co. fell 0.73 percent to end at NT$203.50.

In the mixed old economy sector, Lu noted that "military concept" stocks continued to move higher in expectation of an increase in defense spending by the government.

Fighter jet developer Aerospace Industrial Development Corp. rose 2.62 percent to close at NT$66.50, and Lungteh Shipbuilding Co. gained 4.16 percent to end at NT$188.00.

Bucking the upturn, property developer Kindom Development Co. lost 4.85 percent to close at NT$38.25 and rival King's Town Construction Co. fell 7.43 percent to end at NT$45.45, as investors pocketed profits built last week when the government eased mortgage rules.

In addition, Formosa Plastics Corp. rose 0.93 percent to close at NT$38.15, while Nan Ya Plastics Corp. ended down 0.13 percent at NT$38.40.

In the underperforming financial sector, which lost 0.57 percent, Cathay Financial Holding Co. shed 1.24 percent to close at NT$63.80, and Fubon Financial Holding Co. fell 1.15 percent to end at NT$86.00.

"After recent solid gains, investors should stay alert over possible profit taking as part of today's upturn was eroded with the Taiex hitting an historic intraday high," Lu said. "But with the U.S. Federal Reserve likely to cut interest rates soon, liquidity buying could lend support to the stock markets."

According to the TWSE, foreign institutional investors bought NT$14.62 billion worth of shares on the main board Monday.