TSMC rally lifts Taiex to another record close

Taipei, Feb. 11 (CNA) Shares in Taiwan closed at a fresh record high Wednesday, with the Taiex jumping more than 500 points in the final session before the Lunar New Year break, as heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC) continued to draw buying interest on the back of strong January sales.

The Taiex, the Taiwan Stock Exchange's (TWSE) weighted index, rose 532.74 points, or 1.61 percent, to close at 33,605.71 after moving between 33,071.67 and 33,707.83. Turnover totaled NT$674.08 billion (US$21.47 billion).

Since trading resumed for the Year of the Snake on Feb. 3, the Taiex has surged 10,080.30 points, or 42.85 percent.

"After the index closed above the 33,000-point mark on Tuesday, both local and foreign institutional investors showed a stronger appetite for buying," Mega International Investment Services analyst Alex Huang said.

He said investors rushed to snap up stocks posting solid January revenue, led by TSMC. The chipmaker reported Tuesday that consolidated sales hit a record NT$401.26 billion in January, marking the first time monthly revenue topped NT$400 billion amid the ongoing AI boom.

TSMC, which accounts for more than 40 percent of the Taiex's total market value, rose 1.86 percent to close at NT$1,915.00, contributing about 280 points to the index's rise.

Among other semiconductor stocks benefiting from robust January sales, IC packaging and testing services provider ASE Technology Holding Co. gained 3.05 percent to end at NT$354.50.

Memory chip suppliers Winbond Electronics Corp. added 1.93 percent to close at NT$105.50 and Nanya Technology Corp. grew 2.58 percent to end at NT$278.00 on a global supply shortage.

Elsewhere in the tech sector, power management solutions provider Delta Electronics Inc. rose 6.33 percent to close at NT$1,260.00 and AI server maker and iPhone assembler Hon Hai Precision Industry Co. gained 2.71 percent to end at NT$227.00.

Buying also rotated into select old economy heavyweights, in particular major entities under the Formosa Plastics Group, Huang said.

Nan Ya Plastics Corp. rose 8.24 percent to close at NT$78.80, while Formosa Plastics Corp. gained 2.42 percent to end at NT$46.50.

In the electric machinery sector, Luxe Green Energy Technology Co. surged the daily limit of 10 percent to close at NT$24.95, while Shihlin Electric & Engineering Corp. climbed 2.42 percent to finish at NT$211.50.

The financial sector lagged the broader market, rising 0.88 percent. Fubon Financial Holding Co. edged up 0.74 percent to close at NT$95.20, while Cathay Financial Holding Co. gained 1.16 percent to end at NT$78.80.

"Investors should stay alert to how U.S. markets perform during the holiday, as that could shape the Taiex's direction when trading resumes on Feb. 23," Huang said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$52.36 billion worth of shares on the main board Wednesday.