Taiex up almost 2% as TSMC boosted by strong results

Taipei, Jan. 16 (CNA) Shares in Taiwan surged almost 2 percent and smashed closing records Friday as investors were pleasantly surprised by Taiwan Semiconductor Manufacturing Co.'s (TSMC) fourth-quarter results and strong 2026 growth prospects, analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 598.12 points, or 1.94 percent, at 31,408.70 after moving between 30,844.63 and 31,475.22. Turnover totaled NT$823.36 billion (US$26.08 billion), up from Thursday's NT$671.95 billion.

At an investor conference Thursday, TSMC reported strong fourth quarter results that beat expectations, with a gross margin topping 60 percent.

It also forecast almost 30 percent sales growth in 2026 while planning capital expenditure of up to a record US$56 billion for the year.

"These figures simply told investors AI demand is robust. Investors abroad and at home rushed to pick up the stock," Mega International Investment Services analyst Alex Huang said.

After its American depositary receipts (ADRs) in the U.S. market rose 4.44 percent overnight, TSMC's common shares gained 2.96 percent to close at a high of NT$1,740.00 on Friday.

The stock, which accounts for over 40 percent of total market value, contributed about 400 points to the Taiex's rise on its own.

"A trade deal between Taiwan and the United States to cut [the U.S. tariff on Taiwan-made goods] to 15 percent from 20 percent also eased market uncertainties," Huang said.

"Judging from the expanded turnover, I think many investors were willing to chase prices right now, as the index faced some technical hurdles ahead of 31,500 points," Huang said.

Playing catch-up, United Microelectronics Corp., a smaller contract chipmaker, climbed 6.95 percent to end at NT$58.50, while smartphone IC designer MediaTek Inc. added 1.01 percent to close at NT$1,505.00.

Huang said old economy industries such as machinery firms also were happy with the reduced tariff agreement, with Allis Electric Co. surging 10 percent to close at NT$114.00, and Hiwin Technologies Corp. rising 3.05 percent to end at NT$219.50.

Elsewhere in the old economy sector, Nan Ya Plastics Corp. rose 5.88 percent to close at NT$73.80 and Formosa Plastics Corp. ended up 0.94 percent at NT$43.00.

In the financial sector, which rose 0.58 percent, Cathay Financial Holding Co. gained 1.33 percent to close at NT$76.20, and Fubon Financial Holding Co. ended 0.96 percent higher at NT$95.00.

"After TSMC, an earnings season for tech stocks in the United States will start soon. Keep an eye on it," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$39.92 billion in shares on the market Friday.