Taiex tops 30,000 points for 1st time as TSMC ends at new high

Taipei, Jan. 5 (CNA) Shares in Taiwan moved sharply higher to close above the 30,000-point mark for the first time as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) smashed closing records amid optimism toward demand for its high-end processes, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 755.23 points, or 2.57 percent, at 30,105.04 after moving between 29,779.70 and 30,339.32. Turnover totaled NT$765.81 billion (US$24.40 billion), the second highest level after NT$782.83 billion seen on May 12, 2021.

TSMC, the most heavily weighted stock here, rose 5.36 percent to close at NT$1,670.00, contributing about 680 points to the Taiex's rise and sending the electronics index higher by 3.42 percent.

● TSMC shares soar to record NT$1,650 Monday morning

"The strong interest in TSMC came as investors were betting the chipmaker will continue to benefit from global strong demand for its advanced processes, in particular, after its 2-nanometer process has started mass production during the current AI boom," Hua Nan Securities analyst Kevin Su said.

In addition, smartphone IC designer MediaTek Inc. rose 3.74 percent to end at NT$1,525.00, and IC packaging and testing service provider ASE Technology Holding Co. gained 2.13 percent to close at NT$263.50.

Among TSMC's suppliers, which rode the waves of the chipmaker's higher capital expenditure, engineering service supplier United Integrated Services Co. rose 3.33 percent to end at NT$992.00 and IC assembly firm Scientech Corp. added 3.39 percent to close at NT$350.50.

Also in the tech sector, AI server maker Hon Hai Precision Industry Co., second to TSMC in market value, rose 1.08 percent to end at NT$234.50.

Due to the strength of large-cap tech stocks, the electronics sector accounted for about 73 percent of the total turnover, Su said.

"With electronics stocks attracting most of the market attention, nontech stocks largely traded in weakness," Su said. "The silver lining was that the financial sector stayed resilient."

In the financial sector, which rose 0.52 percent, Cathay Financial Holding Co. ended up 1.73 percent to close at NT$76.50, and Fubon Financial Holding Co. added 1.67 percent to end at NT$97.20.

Among falling old economy stocks, Formosa Plastics Corp. lost 1.17 percent to close at NT$38.00, and Nan Ya Plastics Corp. fell 2.46 percent to end at NT$55.60. In addition, China Steel Corp dropped 0.80 percent to close at NT$18.60, while Tung Ho Steel Corp. ended up 0.94 percent at NT$64.60.

"The U.S. Federal Reserve is likely to cut interest rates further and rising liquidity could lend further support to the global markets," Su said.

Despite the Taiex's increase, foreign institutional investors sold a net NT$7.64 billion worth of shares on the main board on Monday, according to the TWSE.