As TSMC rebounds, Taiwan shares smash closing records again

Taipei, Jan. 27 (CNA) With contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) regaining its footing and rebounding from a session earlier, shares in Taiwan closed at another record high Tuesday, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 253.40 points, or 0.79 percent, at 32,317.92 after moving between 32,095.08 and 32,428.17. Turnover totaled NT$793.51 billion (US$25.20 billion).

"After the Taiex breached the 32,000-point mark (Monday), market sentiment improved significantly, prompting many retail investors to chase prices," Moore Securities Investment Consulting analyst Adam Lin said.

"Today, buying rotated back to TSMC, pushing up the index to another record high," Lin said.

After falling 0.85 percent Monday, TSMC, which accounts for over 40 percent of the market's total value, rose 1.42 percent to close at NT$1,780.00 Tuesday.

The gains contributed about 200 points to the Taiex's rise and helped push the electronics index 1.08 percent higher.

The buying in TSMC shares spread to other semiconductor stocks. United Microelectronics Corp. (UMC), a smaller contract chipmaker, soared 10 percent, the maximum daily increase, to end at NT$76.20.

Investors were betting that orders for more mature chip processes would be shifted to UMC from TSMC, which is cutting mature chip capacity in favor of more advanced chip manufacturing.

Ajinomoto build-up film (ABF) substrate makers continued to attract strong buying on robust demand in the AI era.

Among them, Unimicron Technology Corp. rose 6.31 percent to close at NT$354.00, and Nan Ya Printed Circuit Board Corp. gained 6.76 percent to end at NT$395.00.

Also in the tech sector, AI server maker Hon Hai Precision Industry Co. added 0.67 percent to close at NT$225.50, and power management solution provider Delta Electronics Inc. gained 1.63 percent to end at NT$1,250.00.

"Many old economy stocks were left out of active rotational buying and appeared mixed," Lin said.

China Steel Corp., the largest steel maker in Taiwan, fell 1.53 percent to close at NT$19.35, and Tung Ho Steel Corp. lost 1.54 percent to end at NT$70.30.

In addition, Fortune Electric Co. dropped 0.49 percent to close at NT$1,015.00, and Allis Electric Co. shed 4.32 percent to end at NT$133.00.

Bucking the downturn, Formosa Plastics Corp. rose 4.51 percent to close at NT$51.00, and Formosa Chemicals & Fibre Corp. gained 4.11 percent to end at NT$40.55 as polyvinyl chloride (PVC) prices moved higher.

In the financial sector, which fell 0.48 percent, Cathay Financial Holding Co. lost 1.56 percent to close at NT$75.90, and Fubon Financial Holding Co. ended down 0.86 percent at NT$92.40.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$22.28 billion in shares on the market Tuesday.