Taiwan shares end little changed as TSMC gives up gains

Taipei, Dec. 17 (CNA) Shares in Taiwan closed little changed Wednesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) saw its earlier gains eroded due to futures-led selling on the settlement day for December futures contracts, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 11.49 points, or 0.04 percent, at 27,525.17, after moving between 27,496.60 and 27,780.69. Turnover totaled NT$507.08 billion (US$16.05 billion).

"Today is the settlement day (for December futures)," Mega International Investment Services analyst Alex Huang said. "With foreign institutional investors owning a large number of short-position contracts, it was no surprise that the Taiex gave up its earlier gains."

Trimming TSMC shares, the most heavily weighted local stock, was the most effective way to push down the spot market and profit in futures, Huang said.

TSMC lost 0.35 percent to close at NT$1,403.00, off a high of NT$1,445.00. Its fall from the day's high cost the index about 120 points.

According to the TWSE, foreign institutional investors which added 4,000 short-position futures contracts to about 34,000 Tuesday, sold a net NT$32.45 billion worth of shares on the main board Wednesday.

Profit taking was also seen in other semiconductor stocks with smartphone IC designer MediaTek Inc. ending at NT$1,425.00, up 0.35 percent, after hitting a high of NT$1,455.00. However, memory chip suppliers remained robust on a global supply shortage as shares in Nanya Technology Corp. rose 4.11 percent to close at NT$164.50, and Winbond Electronics Corp. gained 4.67 percent to end at NT$73.90.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, lost 0.59 percent to close at NT$216.50, and Quanta Computer Inc., another AI server producer, shed 2.93 percent to end at NT$265.00.

"The silver lining was that major financial stocks remained resilient on hopes that the White House will announce more deregulation measures for the financial market, which could boost returns on investments," Huang said, referring to a speech planned by U.S. President Donald Trump on Thursday morning Taipei time.

With the financial index up 2.20 percent, CTBC Financial Holding Co. rose 4.93 percent to close at NT$48.95, Cathay Financial Holding Co. gained 4.27 percent to end at NT$73.20, and Fubon Financial Holding Co. added 1.35 percent to closed at NT$97.30.

Old economy stocks closed mixed.

After crude oil prices fell to a four-year low overnight, Formosa Petrochemical Corp. lost 2.03 percent to close at NT$48.25, and Nan Ya Plastics Corp. ended down 1.37 percent at NT$57.40.

On the other hand, China Airlines rose 0.51 percent to close at NT$19.65 and EVA Airways added 0.70 percent to end at NT$35.90 on falling fuel costs.

Even if there is a rebound, the Taiex can expect to see the nearest technical resistance ahead of 28,000 points, Huang said.