Taiwan shares end up as TSMC recoups earlier losses

Taipei, Nov. 3 (CNA) Shares in Taiwan closed higher Monday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) recovered its earlier losses amid continued optimism toward artificial intelligence development, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 101.24 points, or 0.36 percent, at 28,334.59, after moving between 28,150.45 and 28,494.99. Turnover totaled NT$562.30 billion (US$18.38 billion).

The market rose to the day's high in the early-morning session, rising more than 260 points on the back of a rally on the U.S. markets Friday before profit-taking emerged to erode the initial gains, dealers said.

However, last-ditch buying in TSMC led the main board, helping the Taiex return to positive territory, dealers added.

"After a recent strong showing, some investors shifted to the sell side to lock in their gains during the session," Moore Securities Investment Consulting analyst Adam Lin said. "A lot of positive leads, such as strong corporate earnings, had been priced in."

"But, optimism toward AI continued, making TSMC resilient to stabilize the Taiex," Lin said.

TSMC, the most heavily weighted stock here, rose 0.67 percent to close at NT$1,510.00, off a low of NT$1,490.00. The stock's recovery from the day's low helped the Taiex to recoup about 160 points, and sent the electronics index up 0.42 percent.

Buying in the semiconductor industry also spread to memory chip suppliers with Nanya Technology Corp. up 3.40 percent to end at NT$137.00. But, smartphone IC designer MediaTek Inc. lost 0.76 percent to close at NT$1,300.00.

While iPhone assembler and AI server maker Hon Hai Precision Industry Co. faced heavier profit-taking, falling 2.33 percent to end at NT$251.50, buying rotated to other AI-related stocks. Among them, Asia Vital Components Co. gained 4.91 percent to close at NT$1,495.00 and AURAS Technology Co. ended up 3.79 percent at NT$40.00.

With the tech sector leading the uptrend, old economy stocks appeared mixed, dealers said.

Asia Cement Corp. lost 2.34 percent to close at NT$35.45, and rival TCC Group Holdings Co. fell 2.71 percent to end at NT$21.50. Formosa Plastics Corp. shed 1.05 percent to close at NT$37.70, and Formosa Chemicals & Fibre Corp. ended down 1.54 percent to end at NT$28.75.

Bucking the downturn in the old economy sector, Eclat Textile Co. rose 1.22 percent to close at NT$415.50, and rival Far Eastern New Century Corp. gained 1.32 percent to end at NT$26.85.

In the financial sector, which rose 0.61 percent, Fubon Financial Holding Co. added 0.85 percent to close at NT$92.00, while Cathay Financial Holding Co. ended down 0.16 percent at NT$63.90.

"As the Taiex has repeatedly hit highs, short-term volatility is possible," Lin said. "Investors should keep a close eye on U.S. markets, which are expected to dictate Taiwanese tech stocks."

According to the TWSE, foreign institutional investors sold a net NT$8.45 billion worth of shares on the main board on Monday.