Taiex's gains eroded as TSMC falls to negative territory

Taipei, April 20 (CNA) Shares in Taiwan closed moderately higher with earlier gains eroded Monday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) fell into negative territory by the end of the session, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 154.46 points, or 0.42 percent, at 36,958.80 after moving between 36,850.24 and 37,344.50. Turnover totaled NT$919.98 billion (US$28.97 billion).

The local market opened up on a technical rebound from Friday's 0.88 percent decline, and momentum continued with the bellwether electronics sector in focus as investors left behind military conflicts in the Middle East for the moment, dealers said.

However, TSMC encountered last-ditch selling, forcing the Taiex to give up part of its earlier gains, dealers added.

"Although Iran closed the Strait of Hormuz again over the weekend, investors today directed their attention to economic fundamentals during the current AI era instead of geopolitical unease," Hua Nan Securities analyst Kevin Su said.

"Many TSMC suppliers attracted buying, although the chipmaker saw profit taking from its earlier gains," Su said.

TSMC, which accounts for over 40 percent of total market value, fell 0.25 percent to close at NT$2,025.00, off a high of NT$2,055.00. The stock's fall from the day's high cost the Taiex about 240 points.

On Friday, shares in TSMC fell 2.64 percent as investors sold on news after an investor conference held on Thursday, when the chipmaker forecast its sales would grow over 30 percent in U.S. dollar terms in 2026, an upgrade from the previous estimate that the growth would be closer to 30 percent.

"The stock had soared in recent sessions. After the investor conference, I expect it will continue to consolidate around the five-day moving average of NT$2,055," Su said.

Fortunately, buying rotated out of TSMC to its suppliers with engineering services provider Marketech International Corp. soaring 10 percent, the maximum daily increase, to end at NT$394.0, and IC assembly equipment maker Scientech Corp. rising 6.32 percent to close at NT$808.00.

Also in the tech sector, TSMC's application-specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. surged 10 percent to end at NT$3,580.00 and power management solution provider Delta Electronics Inc. rose 3.26 percent to close at NT$1,900.00.

Nontech stocks largely lagged behind their tech counterparts, dealers said.

China Steel Corp., Taiwan's biggest steel maker, fell 1.24 percent to close at NT$19.85 and Tung Ho Steel Corp. lost 2.37 percent to end at NT$70.10. In addition, Formosa Plastics Corp. dropped 1.50 percent to close at NT$70.10 and Nan Ya Plastics Corp. shed 2.28 percent to end at NT$85.70.

In the financial sector, which lost 0.08 percent, Fubon Financial Holding Co. dropped 0.91 percent to close at NT$87.20, and Cathay Financial Holding Co. ended down 0.53 percent at NT$74.60.

According to the TWSE, foreign institutional investors bought a net NT$4.35 billion of shares on the main board Monday.