Taiwan shares end up on rotational buying

Taipei, Jan. 14 (CNA) Shares in Taiwan closed higher Wednesday as buying rotated to select tech stocks that had lagged behind semiconductor shares, while TSMC finished unchanged, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 234.56 points, or 0.76 percent, at 30,941.78 after moving between 30,742.53 and 30,994.81. Turnover totaled NT$658.70 billion (US$20.82 billion).

"Today's funds rotated out of TSMC (Taiwan Semiconductor Manufacturing Co.) to other tech stocks with relatively low valuations," Concord Securities analyst Kerry Huang said.

"The passive electronics component segment benefited from the rotational buying, helping push the Taiex closer to the 31,000 point level," Huang said.

Among passive component vendors, Yageo Corp., the world's third largest multi-layer ceramic capacitor maker, soared 6.91 percent to close at NT$278.50 and Kaimei Electronic Corp., another capacitor supplier, rose 4.71 percent to end at NT$100.00 on a product price hike.

Rotational buying also boosted other major electronics stocks. AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 3.53 percent to close at NT$234.50, and Quanta Computer Inc., another AI server supplier, gained 2.51 percent to end at NT$286.00.

Contract chipmaker TSMC, which accounts for over 40 percent of the Taiex's market value, closed unchanged at NT$1,710.00.

"Investors held back from buying TSMC prior to its investor conference Thursday," Huang said. "They wanted to wait for TSMC's 2025 results, 2026 guidance, and indications of a possible increase in its U.S. investment."

Among semiconductor stocks, smartphone IC designer MediaTek Inc. rose 1.01 percent to end at NT$1,500.00, and memory chip supplier Nanya Technology Corp. gained 2.83 percent to close at NT$236.50.

The semiconductor sub-index rose only 0.10 percent because of TSMC's lack of movement, while the electronics index added 0.77 percent.

In the old economy sector, Nan Ya Plastics Corp., the parent of Nanya Technology, rose 1.93 percent to end at NT$63.40, and Formosa Plastics Corp. also added 2.11 percent to close at NT$41.05.

Due to demand for equipment to enhance power supply networks, Fortune Electric Co. and Teco Electric & Machinery Co. jumped 10 percent, the maximum daily increase, to end at NT$893.00 and NT$198.00, respectively.

With the financial index down 0.43 percent, Cathay Financial Holding Co. fell 3.49 percent to close at NT$74.70, and Fubon Financial Holding Co. ended down 0.42 percent at NT$93.80.

"Whether the Taiex will challenge 31,000 points will depend on whether TSMC's investor conference surprises investors," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$13.28 billion in shares on the market Wednesday.