Taiwan shares end at new high but most gains eroded

Taipei, Oct. 21 (CNA) Shares in Taiwan closed at a new high Tuesday but gave up most of earlier gains as investors rushed to lock in their significant profits built in recent sessions with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in focus, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 63.78 points, or 0.23 percent, at 27,752.41 after moving between 27,742.55 and 27,969.05. Turnover totaled NT$513.92 billion (US$16.76 billion).

Despite the closing high, "investors have turned cautious about a possible major technical pullback after the Taiex posted gains since the Trump administration announced its sweeping 'reciprocal' tariffs in April," Mega International Investment Services analyst Alex Huang said.

Before Tuesday, the index had soared 10,296.87 points, or 59.21 percent, from the closing level of 17,391.76 on April 9.

"Today's expanded turnover showed many investors tended to trim holdings now, TSMC was among the targets," Huang said. "But, I prefer to say TSMC's fundamentals stay sound, while such positive leads have been priced in."

TSMC, the most heavily weighted stock here, closed unchanged at NT$1,480.00, off a high of NT$1,500.00. TSMC's fall from the day's high cost the Taiex about 160 points.

Profit-taking also affected other semiconductor heavyweights with IC packaging and testing services provider ASE Technology Holding Co. falling 2.50 percent to end at NT$195.00 and smartphone IC designer MediaTek Inc. closing unchanged at NT$1,340.00.

Buying rotated to smaller IC designers with TSMC's application specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. soaring 10 percent, the maximum daily increase, to end at NT$1,675.00.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 0.21 percent to close at NT$239.00. In contrast, Quanta Computer Inc., another AI server supplier, fell 1.85 percent to end at NT$291.00.

"Some old economy stocks attracted rotational buying and the biotech industry was one of them, but with their small weighting, the gains failed to give a significant boost to the Taiex," Huang said.

With the biotech index rising 2.13 percent, oncology and specialty generics drug developer Lotus Pharmaceutical Co. surged 10 percent to close at NT$306.50, and test kit supplier Panion & BF Biotech Inc. gained 1.52 percent to end at NT$66.70.

In addition, Highwealth Construction Corp. rose 1.78 percent to close at NT$51.40, and Kindom Development Co. added 1.06 percent to end at NT$33.50.

In the financial sector, which rose 0.44 percent, Fubon Financial Holding Co. rose 1.68 percent to close at NT$90.60, and Cathay Financial Holding Co. ended up 0.61 percent at NT$65.70.

"The Taiex has faced high technical hurdles ahead of 28,000 points," Huang said. "Investors had better raise cash to about 30 percent of their portfolios, while reducing stock holdings, to avoid losses from possible major corrections."

According to the TWSE, foreign institutional investors sold a net NT$240.71 million worth of shares on the main board on Tuesday.