Taiwan shares end up but off highs before MSCI index adjustments

Taipei, Nov. 24 (CNA) Shares in Taiwan closed slightly higher Monday, as large-cap tech stocks faced last-ditch selling before the regular index adjustments by MSCI Inc. went into effect after the market's close, dealers said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 69.3 points, or 0.26 percent, at 26,504.24 after moving between 26,482.33 and 26,764.13. Turnover totaled NT$713.01 billion (US$22.67 billion).

The market opened up 0.61 percent and momentum accelerated to vault the Taiex to a high by 330 points in the early morning session on a rebound from Friday's 3.61 percent plunge as New York Federal Reserve President John Williams suggested the Fed will cut rates in December, dealers said.

But, selling followed and escalated in the late session with select heavyweights in focus to compromise the upturn, dealers added.

"Investors tended to hold back before the index adjustments became effective and the initial gains simply provided the ground for them to pocket profits," Moore Securities Investment Consulting analyst Adam Lin said.

While MSCI on Nov. 6 announced to raise Taiwan's weighting in one of its major indexes and left the weighting unchanged in two others, Taiwan Semiconductor Manufacturing Co. (TSMC) suffered the steepest cut of 0.51 percentage points among the constituents in the MSCI Taiwan Index.

TSMC, the most heavily weighted stock here, fell 0.72 percent to close at NT$1,375.00, off a high of NT$1,405.00. Its fall from the day's high cost the Taiex 240 points.

"AI bubble worries remained as Nvidia Corp. shares stayed in consolidation," Lin said. "So, Taiwan's AI stocks like TSMC faced pressure," Lin said.

However, United Microelectronics Corp., a smaller contract chipmaker, rose 3.44 percent to end at NT$46.55, memory chip supplier Nanya Technology Corp. gained 2.14 percent to close at NT$143.00, and smartphone IC designer MediaTek Inc. ended up 0.44 percent at NT$1,150.00.

Among other AI-related stocks, AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 2.22 percent to close at NT$220.00, while Quanta Computer Inc., another AI server supplier, ended up 0.74 percent at NT$272.00.

"Bargain hunters moved money to nontech stocks. But, trading volume was not big enough to provide meaningful support to the Taiex," Lin said.

Eclat Textile Co. rose 4.05 percent to close at NT$436.50, and rival Makalot Industrial Co. gained 2.83 percent to end at NT$309.50. Formosa Plastics Corp. added 1.25 percent to close at NT$40.50, and Nan Ya Plastics Corp. climbed 4.38 percent to end at NT$54.80.

In the financial sector, Fubon Financial Holding Co. rose 3.72 percent to close at NT$90.20, and Cathay Financial Holding Co. ended up 2.99 percent to close at NT$65.50.

"It was worth watching foreign institutional investors as they have stood on the sell side recently," Lin said.

According to the TWSE, foreign institutional investors sold a net NT$29.96 billion worth of shares on the main board Monday.