Taiwan shares end above 33,000 points on TSMC's solid gains

Taipei, Feb. 10 (CNA) Shares in Taiwan ended at the day's high of 33,072.97 points Tuesday, as Taiwan Semiconductor Manufacturing Co. (TSMC) scored strong gains after its American depositary receipts (ADRs) closed at a record price overnight, dealers said.

This marked a 668.35-point, or 2.06 percent, rise for the Taiex, the Taiwan Stock Exchange's (TWSE) benchmark weighted index. Turnover totaled NT$656.51 billion (US$20.82 billion).

"Major market players simply used TSMC to control the Taiex due to its heavy weighting to vault the index over 33,000 points at the end of a session for the first time," Concord Securities analyst Kerry Huang said, citing a 1.88 percent hike of the contract chipmaker's ADRs.

"The buying demonstrated continued optimism toward AI development and large-scale global investment in AI infrastructure," Huang added.

TSMC, which accounts for over 40 percent of the Taiex's value, rose 3.58 percent to close at the day's high of NT$1,880.00, contributing about 520 points to the Taiex's rise and sending the electronics index 2.66 percent higher.

While buying also rotated to other semiconductor stocks, with IC packaging and testing services provider ASE Technology Holding Co. rising 5.20 percent to end at NT$344.00.

But, memory chip suppliers retreated from recent strong gains. Nanya Technology Corp. lost 1.28 percent to close at NT$271.00, and Winbond Electronics Corp. shed 3.72 percent to end at NT$103.50.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 1.14 percent to close at NT$221.00, while printed circuit board supplier Compeq Manufacturing Co. gained 6.09 percent to end at NT$183.00.

"As TSMC absorbed most of the buying, the local market's strength appeared uneven with many smaller-cap stocks left behind," Huang said, referring to a 0.03 percent fall on the over-the-counter market.

"Furthermore, old economy stocks on the main board also underperformed the Taiex," Huang said, citing the petrochemical industry.

With the petrochemical industry down 2.87 percent, Nan Ya Plastics Corp. shed 6.67 percent to close at NT$72.80 and Formosa Plastics Corp. lost 2.68 percent to end at NT$45.40. In addition, Formosa Chemicals & Fibre Corp. slid 5.12 percent to close at NT$40.75 and Formosa Petrochemical Corp. ended down 2.00 percent at NT$49.00.

Elsewhere in the old economy sector, Shihlin Electric & Engineering Corp. dropped 0.24 percent to close at NT$966.00, and Fortune Electric Co. rose 2.22 percent to end at NT$966.00.

In the financial sector, which rose 0.55 percent, Cathay Financial Holding Co. rose 0.91 percent to close at NT$77.90, and Fubon Financial Holding Co. ended up 0.75 percent at NT$94.50.

Tuesday was the penultimate day of trading before the Lunar New Year holiday. "Investors should keep an eye on the U.S. markets for clues about whether the Taiex will continue its strength on Wednesday," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$55.71 billion worth of shares on the main board Tuesday.