Taiwan shares rebound, return to 32,000-point mark

Taipei, Feb. 3 (CNA) Shares in Taiwan bounced back Tuesday from the previous session's slump to return to the 32,000-point level as the bellwether electronics sector attracted bargain hunting, dealers said.

After falling 1.37 percent on Monday, the Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 571.33 points, or 1.81 percent, at 32,195.36 on Tuesday after moving between 31,737.66 and 32,293.83. Turnover totaled NT$794.99 billion (US$25.17 billion).

"On a (3.27 percent) increase of its American depositary receipts overnight, investors resumed their buying in Taiwan Semiconductor Manufacturing Co.'s (TSMC) common shares today due to the AI boom," Concord Securities analyst Kerry Huang said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 1.98 percent to close at NT$1,800.00, contributing about 280 points to the Taiex's rise, and sending the electronics index up 2.14 percent.

Buying spread to other large-cap semiconductor stocks, with smartphone IC designer MediaTek Inc. rising 5.28 percent to end at NT$1,795.00, while memory chip suppliers Winbond Electronics Corp. shed 9.05 percent to close at NT$205.50 amid worries over China's production expansion.

"In addition to TSMC, investors rushed to buy other AI-related electronics component stocks, lending additional support to the Taiex," Huang said.

Among them, power management solution provider Delta Electronics Inc. rose 3.40 percent to close at NT$1,215.00. Printed circuit board maker Gold Circuit Electronics Ltd. gained 6.94 percent to end at NT$755.00, and Elite Material Co., a supplier of copper clad laminate used in PCB production, added 3.92 percent to close at NT$1,855.00.

"Old economy stocks, particularly products that are used in AI-related devices, also moved higher," Huang said, citing glass cloth suppliers Taiwan Glass Industry Corp. and Fulltech Fiber Glass Corp., which soared 10 percent, the maximum daily increase, to end at NT$49.40 and NT$95.70, respectively.

Elsewhere in the old economy sector, Nan Ya Plastics Corp. rose 3.40 percent to close at NT$73.00, and Formosa Plastics Corp. ended up 1.47 percent at NT$44.95. In addition, China Airlines rose 1.47 percent to close at NT$22.30 and EVA Airways added 1.47 percent to end at NT$38.05.

In the financial sector, Fubon Financial Holding Co. rose 1.44 percent to close at NT$91.80, and Cathay Financial Holding Co. ended up 0.54 percent at NT$74.70.

"With retail investors as the major players in the market now, they tend to pocket as much cash as possible ahead of the Lunar New Year holiday, volatility could continue," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$7.27 billion of shares on the main board Tuesday.