Taiex ends at new high despite U.S. threats to blockade Hormuz Strait

Taipei, April 13 (CNA) Shares in Taiwan closed slightly up at a new closing high Monday after recouping earlier losses, despite U.S. President Donald Trump's threats to blockade the Strait of Hormuz after failing to reach an agreement with Iran, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 39.46 points, or 0.11 percent, at 35,457.29 after moving between 35,261.73 and 35,552.49. Turnover totaled NT$778.77 billion (US$24.49 billion).

The market moved underwater during most of Monday's session in the wake of Trump's threats, but bargain hunters turned active in the late session, helping the Taiex recover its earlier downturn, with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in focus, dealers said.

"The Taiex's initial losses came in line with other regional markets," Cathay Futures Consultant analyst Tsai Ming-han said. "The recovery from the low indicated many investors appeared upbeat the U.S. and Iran will eventually strike a deal."

"More important, investors have high hopes that TSMC will provide positive leads at its investor conference (slated for Thursday) after it reported a new high in sales for the first quarter," Tsai said.

TSMC, which accounts for over 40 percent of total market value, fell 0.50 percent from the closing level on Friday, to close at the day's high of NT$1,990.00, off a low of NT$1,975.00. TSMC's rise from the day's low allowed the Taiex to recoup about 120 points.

Tsai said buying rotated to other semiconductor stocks. Shares in smartphone IC designer MediaTek Inc. rose 2.86 percent to end at NT$1,620.00, and IC packaging and testing firm ASE Technology Holding Co. gained 6.23 percent to close at NT$417.50.

Memory chip supplier Nanya Technology Corp. ended up 4.88 percent at NT$225.50.

Also in the tech sector, power management solution provider Delta Electronics Inc. rose 0.29 percent to close at NT$1,740.00, while AI server maker and iPhone assembler Hon Hai Precision Industry Co. ended down 0.25 percent at NT$200.00.

Outperforming the broader market, local petrochemical stocks attracted strong buying after international crude oil prices surpassed US$100 per barrel on Trump's threats, Tsai said.

In the sector, Formosa Plastics Corp. soared 9.48 percent to close at NT$51.40, and Nan Ya Plastics Corp. gained 5.02 percent to end at NT$85.70.

Elsewhere in the old economy sector, Tung Ho Steel Corp. lost 0.28 percent to close at NT$71.20, while China Steel Corp., Taiwan's biggest steel maker, ended up 0.75 percent at NT$20.20.

In the financial sector, Fubon Financial Holding Co. dropped 1.03 percent to close at NT$86.70, and Cathay Financial Holding Co. fell 1.23 percent to end at NT$72.00.

"After a rally last week, the Taiex has become technically healthier," Tsai said. "Amid possible volatility caused by geopolitical tensions, the index could see strong support ahead of 35,000 points."

According to the TWSE, foreign institutional investors sold a net NT$16.13 billion of shares on the main board Monday.