Taiwan shares end at new high on TSMC rally

Taipei, Jan. 13 (CNA) Shares in Taiwan closed at a new high Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) extended its momentum from a session earlier amid optimism over global demand for AI applications, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 139.93 points, or 0.46 percent, at 30,707.22 after moving between 30,529.33 and 30,973.85. Turnover totaled NT$723.43 billion (US$22.85 billion).

"The local main board remained dictated by TSMC," Taishin Securities Investment Advisory analyst Tony Huang said. "Investors look forward to positive leads from the chipmaker at an investor conference slated for Thursday during the AI era boom."

TSMC, which accounts for over 40 percent of total market value, rose 1.18 percent to close at NT$1,710.00, pushing up the electronics index by 0.61 percent and the semiconductor index by 1.12 percent.

After the New York Times reported Monday that TSMC will build more semiconductor facilities or fabs in the U.S. state of Arizona, the company's suppliers attracted strong interest, Huang said.

Among them, cleanroom builder United Integrated Services Co. soared 10 percent, the maximum daily rise, to end at NT$1,080.00, and shares in technology integration support services provider Marketech International Corp. rose 7.34 percent to close at NT$292.50.

Also in the semiconductor industry, smartphone IC designer MediaTek Inc. rose 2.77 percent to end at NT$1,485.00, while memory chip supplier Nanya Technology Corp. pulled back from its recent rally, falling 3.37 percent to close at NT$230.00.

AI server maker and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, lost 0.88 percent to end at NT$226.50.

In the old economy sector, Formosa Plastics Corp. shed 3.13 percent to close at NT$40.20, and Nan Ya Plastics Corp., the parent of Nanya Technology, dropped 3.86 percent to end at NT$62.20.

In addition, food brand Uni-President Enterprises Corp. rose 0.66 percent to close at NT$76.10, while Wei Chuan Foods Corp. ended down 0.35 percent at NT$14.35.

With the financial index rising 0.02 percent, Cathay Financial Holding Co. added 0.71 percent to close at NT$77.40, but Fubon Financial Holding Co. ended down 0.84 percent at NT$94.20.

"Despite the gains, the Taiex still came off its day's high as it moved closer to the psychological level of 31,000 points," Huang said. "But I expect the market will challenge it amid active rotational buying and stocks in the financial sector provide good buying opportunities on their low valuations."

According to the TWSE, foreign institutional investors bought a net NT$15.74 billion worth of shares on the main board Tuesday.