TSMC rebound pushes up Taiex to closing high

Taipei, Jan. 20 (CNA) Shares in Taiwan closed at a new record high Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) recouped early losses amid optimism over its fundamentals, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 120.70 points, or 0.38 percent, at the day's high of 31,759.99, off a low of 31,340.10. Turnover totaled NT$777.11 billion (US$24.55 billion).

"I suspect major local investors stood behind the buy side of TSMC," Moore Securities Investment Consulting analyst Adam Lin said. "TSMC's sound fundamentals continued to attract bargain hunters to jump in, helping the Taiex stay in an uptrend."

TSMC, which makes up over 40 percent of the total market value, rose 0.85 percent to close at NT$1,775.00, off a low of NT$1,740.00. The stock's recovery from the day's low helped the broader market recoup about 280 points.

Shares in IC packaging and testing service provider ASE Technology Holding Co. fell 1.00 percent to end at NT$296.00, and memory chip supplier Nanya Technology Corp. lost 1.09 percent to close at NT$272.00. However, United Microelectronics Corp., a smaller contract chipmaker, soared 8.48 percent to close at NT$67.80.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. lost 2.61 percent to close at NT$223.50, while power management solutions provider Delta Electronics Inc. ended up 0.89 percent at NT$1,130.00.

"Many old economy stocks retreated from recent gains but machinery companies attracted buying," as Washington has agreed to cut tariffs on Taiwanese goods from 20 percent to 15 percent, Lin said. "Glass cloth makers benefited from a product price spike."

Machinery maker Hiwin Technologies Corp. rose 1.52 percent to close at NT$233.50, and Tongtai Machine & Tool Co. gained 1.37 percent to end at NT$37.00.

Among glass cloth makers, Taiwan Glass Industry Co. surged the daily maximum 10 percent to close at NT$50.50. On the over-the-counter market, Baotek Industrial Materials Ltd. also jumped 10 percent to end at NT$101.50.

However, Nan Ya Plastics Corp. dropped 3.78 percent to close at NT$76.40, and Formosa Plastics Corp. shed 2.97 percent to end at NT$42.40.

In the financial sector, Fubon Financial Holding Co. lost 1.05 percent to close at NT$94.00, and Cathay Financial Holding Co. ended down 1.03 percent at NT$76.60, while E. Sun Financial closed up 0.30 percent at NT$33.10.

"We have to keep a close eye on how the U.S. markets perform after the current futures losses, which could affect the Taiex tomorrow," Lin said, urging investors to stay cautious about possible volatility on Wednesday, the January contract settlement date.

According to the TWSE, foreign institutional investors sold a net NT$3.98 billion of shares on the main board Tuesday.