Taiwan shares end up but turnover shrinks

Taipei, Feb. 4 (CNA) Shares in Taiwan closed slightly higher Wednesday but turnover fell amid caution toward possible volatility on the U.S. markets during the ongoing earnings season, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 94.45 points, or 0.29 percent, at 32,289.81 after moving between 31,942.28 and 32,380.00. Turnover totaled NT$685.4 billion (US$21.73 billion), compared with NT$821.57 billion Tuesday.

Before the closing gains, the local main board initially came under pressure, down over 250 points, led by the electronics sector. Investors took cues from a plunge by Advanced Micro Devices, Inc. in the after-hours trading despite its better-than-expected results, dealers said.

"While AMD's results beat the market consensus, many investors wanted much better figures to justify the recent significant gains among AI stocks," Mega International Investment Services analyst Alex Huang said.

Amid fears over U.S. tech volatility, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, underperformed the Taiex, falling 0.83 percent to close at NT$1,785.00. Its losses compromised the index's gains by about 120 points.

"Look at the reduced turnover. I think investors appeared reluctant to chase prices for now, keeping alert over the U.S. markets," Huang said. "Ahead of the nine-day Lunar New Year holiday, investors tended to act prudently to send turnover lower."

"Without a higher TSMC, the Taiex just moved in a narrow range," Huang added.

Power management solution provider Delta Electronics Inc. fell 0.41 percent to end at NT$1,210.00, while AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 1.15 percent to close at NT$278.00.

As buying rotated out of TSMC, select smaller electronics component suppliers benefited with Unitech Printed Circuit Board Corp. soaring 10 percent to end at NT$59.50.

Huang said buying largely focused on raw material stocks on their relatively low valuations.

In the petrochemical industry, which rose 2.3 percent, Nan Ya Plastics Corp. gained 6.30 percent to close at NT$77.60 and Formosa Plastics Corp. added 4.23 percent to end at NT$46.83.

After raising its wholesale prices, China Steel Corp., the largest steelmaker in Taiwan, rose 1.45 percent to close at NT$20.95. Tung Ho Steel Corp. also gained 1.86 percent to end at NT$71.30.

With the financial industry up 0.83 percent. Cathay Financial Holding Co. rose 2.01 percent to close at NT$76.20, and Fubon Financial Holding Co. ended up 0.98 percent at NT$92.70.

"Alphabet, Google's parent company, and Amazon are set to report their earnings on Wednesday and Thursday (U.S. time), respectively. It is worth watching how the U.S. markets will react to their results," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$12.07 billion of shares on the main board Wednesday.