Taiwan shares extend strength to end above 37,000 points

Taipei, April 16 (CNA) Shares in Taiwan continued momentum from a session earlier to close above the 37,000-point mark for the first time Thursday as market sentiment improved amid hopes that the United States and Iran will resume peace negotiations soon, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 409.88 points, or 1.12 percent, at a new high of 37,132.02. Turnover totaled NT$886.79 billion (US$27.88 billion).

"Optimism toward the potential new U.S.-Iran talks continued to push up the U.S. markets and investors here just seized on the momentum to raise their holdings, vaulting the Taiex past 37,000 points," Mega International Investment Services analyst Alex Huang said.

After reports said the Trump administration expressed optimism that a second round of talks with Iran is likely to be held in Pakistan, the S&P 500 and the tech-heavy Nasdaq hit record highs overnight.

"Today, buying continued to focus on the electronics sector during the current AI era," Huang said. "Although TSMC (Taiwan Semiconductor Manufacturing Co. (TSMC) still closed at a new high, its momentum appeared limited as investors awaited an investor conference to open after the market's close."

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose only 0.24 percent to close at NT$2,085.00 after a 1.22 percent growth Wednesday.

"The silver lining was rotational interest stayed active to benefit other tech heavyweights and the Taiex as a whole," Huang said.

Smartphone IC designer MediaTek Inc. rose 5.87 percent to end at NT$1,895.00, power management solution provider Delta Electronics Inc. gained 3.36 percent to close at NT$1,845.00, and United Microelectronics Corp., a smaller contract chipmaker, soared 10 percent, the maximum daily increase, to end at NT$68.30.

Bucking the upturn, AI server maker and iPhone assembler Hon Hai Precision Industry Co. fell 0.24 percent to close at NT$207.00, but Quanta Computer Inc., another AI server supplier, ended up 3.24 percent at NT$318.50.

Nontech stocks largely moved higher in line with the Taiex, but the strength appeared limited, dealers said.

In the old economy sector, Formosa Plastics Corp. rose 4.21 percent to close at NT$54.50 and Nan Ya Plastics Corp. gained 2.26 percent to end at NT$90.50. Shihlin Electric & Engineering Corp. added 1.03 percent to close at NT$196.00, while Fortune Electric Co. ended down 0.46 percent at NT$87.90.

In the financial sector, which rose 0.76 percent, Cathay Financial Holding Co. rose 1.78 percent to close at NT$74.20, and Fubon Financial Holding Co. gained 0.46 percent to end at NT$87.90.

"As the Taiex repeatedly hit a new high, I do not rule out any technical corrections," Huang said. "But the index could see strong technical support around 35,579 points, an intraday high on Feb. 26."

According to the TWSE, foreign institutional investors bought a net NT$44.01 billion of shares on the main board Thursday.