Taiex ends at fresh high as TSMC smashes closing records

Taipei, April 14 (CNA) Shares in Taiwan closed at another new high Tuesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) smashed its previous closing levels amid hopes that the United States and Iran will eventually strike a ceasefire agreement, dealers said.

The Taiex, the benchmark index of the Taiwan Stock Exchange (TWSE), ended up 838.83 points, or 2.37 percent, at 36,296.12 after moving between 35,584.09 and 36,341.44. Turnover totaled NT$971.73 billion (US$30.62 billion).

Hopes of a U.S.-Iran deal were raised after U.S. President Donald Trump said overnight that Tehran had "called" to say "they would like to work to a deal," prompting buying on Tuesday from investors in the region, including Taipei, Moore Securities Investment Consulting analyst Adam Lin said.

"Judging from a stronger Taiwan dollar today, I think foreign institutional investors rushed to move funds into the local market," Lin said. "As they rebuilt positions, there was no doubt that TSMC, sitting on sound fundamentals, was their top choice."

TSMC, which accounts for over 40 percent of total market share, rose 3.27 percent to close at a high of NT$2,055.00, smashing the previous record of NT$2,015.00 seen on Feb. 25. TSMC's gains contributed about 516 points to the Taiex's rise, and sent the electronics index up 3.12 percent.

According to the TWSE, foreign institutional investors bought a net NT$68.91 billion of shares on the main board on Tuesday, when the U.S. dollar closed sharply lower by NT$0.095 to close at NT$31.690 against the Taiwan dollar.

Lin said other tech heavyweights also attracted strong interest, with smartphone IC designer MediaTek Inc. rising 6.17 percent to end at NT$1,720.00 and AI server and iPhone assembler Hon Hai Precision Industry Co. gaining 3.75 percent to close at NT$207.50.

Smartphone lens supplier Largan Precision Co. soared 10 percent, the maximum daily increase, to end at NT$2,670.00.

"With the electronics sector accounting for about 77 percent of total turnover, the strength of non-tech stocks was largely capped," Lin said.

Among them, food brand Uni-President Enterprises Corp. rose 0.14 percent to close at NT$72.10, and Wei Chuan Foods Corp. ended up 0.38 percent at NT$13.35.

Shihlin Electric & Engineering Corp. gained 0.52 percent to close at NT$193.50, and Allis Electric Co. added 0.94 percent to end at NT$89.00.

Petrochemical stocks outperformed the old economy sector, up 2.77 percent. Formosa Plastics Corp. rose 5.64 percent to close at NT$54.30 and Nan Ya Plastics Corp. ended up 3.85 percent at NT$89.00.

In the financial sector, which rose 1.02 percent, Fubon Financial Holding Co. rose 1.04 percent to close at NT$87.60 and Cathay Financial Holding Co. ended up 0.97 percent at NT$72.70.

"With the Taiex repeatedly hitting highs, many investors believed the worst of the impact from the Middle East tensions is over," Lin said. "As long as crude oil prices turn stable, the U.S. markets continue to move higher and the local index will follow."