New TSMC high pushes Taiwan shares to record close

Taipei, Jan. 19 (CNA) Taiwan's stock market hit fresh record highs Monday, with the Taiex reaching an intraday record of 31,827.39 points before ending at a new closing high of 31,639.29, on a strong showing by Taiwan Semiconductor Manufacturing Co. (TSMC).

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 230.59 points, or 0.73 percent, at 31,639.29, with turnover totaling NT$799.3 billion (US$25.33 billion).

TSMC shares climbed to a record NT$1,780 in intraday trading, before closing 1.15 percent higher at NT$1,760.

Two other heavyweight tech stocks bucked the generally upward trend. Hon Hai Precision Industry Co. fell 2.13 percent to close at NT$229.50, and Delta Electronics Inc. slipped 0.44 percent to NT$1,120.

Memory stocks outperformed the broader market after Powerchip Semiconductor Manufacturing Corp. announced Saturday that it would sell its Tongluo plant to U.S.-based Micron Technology Inc. for US$1.8 billion, with the transaction expected to be completed in the second quarter.

The deal, which is projected to generate sizable disposal gains for Powerchip, prompted the company's shares to rise by the maximum 10 percent to NT$62.

The upbeat sentiment spilled over to the broader memory sector, with DRAM maker Nanya Technology Corp. rising to the daily limit at NT$275, while Winbond Electronics Corp. jumped more than 9 percent to close at NT$116.50.

Memory module supplier Phison Electronics Corp. surged past NT$2,000 during intraday trading to a high of NT$2,025 before ending up 4.76 percent at NT$1,980.

The PCB sector also remained strong on expectations of price increases. Glass fiber cloth suppliers Fulltech Fiber Glass Corp. and Taiwan Glass Corp. both rose by the daily maximum to finish at NT$108.50 and NT$45.95, respectively.

ABF substrate makers Unimicron Technology Corp., Kinsus Interconnect Technology Corp. and Nan Ya Printed Circuit Board Corp. likewise ended the session up by the maximum 10 percent at NT$301, NT$211.50 and NT$318, respectively.

Cathay Futures Consultant Co. analyst Tsai Ming-han (蔡明翰) said TSMC's pullback at the open followed by a rebound was a reasonable consolidation after its recent rally.

Tsai said that based on past experience, TSMC shares have often taken a breather following earnings calls before resuming their upward trend once fresh positive catalysts emerged.

Even if TSMC enters a consolidation phase, however, the AI boom has already spread to a wider range of related sectors, leaving Taiwan's bullish market structure intact, he said.

According to the Taiwan Stock Exchange, foreign institutional investors sold NT$28.03 billion in shares on the market Monday.