Taiwan shares end at new high led by AI-related stocks

Taipei, April 21 (CNA) Shares in Taiwan closed at another record high Tuesday after tech stocks soared amid continued optimism over the development of artificial intelligence infrastructure and applications around the world, analysts said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 646.31 points, or 1.75 percent, at 37,650.11 after moving between 37,051.25 and 37,781.83. Turnover totaled NT$981.53 billion (US$31.16 billion).

The market opened higher and kept its upward momentum through the end of the session as investors added to their holdings of AI related stocks despite the uncertainty over the situation in the Middle East, Cathay Futures Consultant analyst Tsai Ming-han said.

"It seems that the worst of the impact of geopolitical unease is over," Tsai said. "Investors have more of an appetite to take risks and they were upbeat about Taiwan's strong exports of AI-related devices."

Tsai described Tuesday's gains as a "fundamentals-driven uptrend."

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) was one of Tuesday's winners, rising 1.23 percent to close at NT$2,050.00. The stock, which accounts for over 40 percent of total market value, contributed about 200 points to the Taiex's rise.

Application-specific integrated circuit (ASIC) designer Alchip Technologies Ltd. soared 10 percent, the maximum daily increase, to end at NT$3,985.00, and smartphone IC designer MediaTek Inc., which had lagged behind other tech stocks, played catch-up, surging 10 percent to close at NT$2,090.00.

Also in the tech sector, power management solution provider Delta Electronics Inc. gained 6.05 percent to end at NT$2,015.00 and AI server maker and iPhone assembler Hon Hai Precision Industry Co. closed up 1.69 percent at NT$211.00.

Quanta Computer Inc., another AI server supplier, climbed 3.34 percent to close at NT$340.00.

"Because market attention was directed toward the bellwether electronics sector, non-tech stocks largely appeared lackluster," Tsai said.

Food brand Uni-President Enterprises Corp. lost 0.83 percent to close at NT$372.00, and cooking oil brand Great Wall Enterprise Co. fell 1.64 percent to end at NT$54.10.

Eclat Textile Co. shed 2.54 percent to close at NT$345.00, and Far Eastern New Century Co., another textile maker, ended down 0.57 percent at NT$26.00.

Bucking the downturn, Nan Ya Plastics Corp. gained 3.15 percent to close at NT$345.00 on its production of raw materials used in AI gadgets, but Formosa Plastics Corp. ended down 1.52 percent at NT$51.80.

In the financial sector, which fell 0.26 percent, Mega Financial Holding Co. dropped 0.75 percent to close at NT$39.45, but Cathay Financial Holding Co. rose 1.21 percent to end at NT$75.50.

"As the Taiex has soared significantly recently to breach 37,000 points, a technical pullback is possible in the short term," Tsai said. "But, in the longer run, an uptrend remains likely due to sound fundamentals."

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$60.15 billion worth of shares Tuesday.