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

Taipei, May 29 (CNA) Shares in Taiwan closed higher by over 1,000 points at a new high Friday as buying focused on the bellwether electronics sector amid continued AI enthusiasm and improved sentiment on reports that the United States and Iran have agreed to extend a ceasefire, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 1,096.50 points, or 2.51 percent, at 44,732.94 after moving between 43,815.48 and 44,933.95. Turnover also hit a new high of NT$1.82 trillion (US$57.29 billion).

Cathay Futures Consultant analyst Tsai Ming-han (蔡明翰) said the massive turnover was boosted by last-ditch buying ahead of MSCI's upgrade of Taiwan's weighting in three of its major indexes, which became effective after Friday's market close.

"Today's buying reflected reduced concerns over the geopolitical unease in the Middle East," Tsai said. "More importantly, strong interest was sparked by optimism toward AI."

"After the (tech-heavy) Nasdaq index smashed records overnight, the local electronics sector just followed suit, led by TSMC (Taiwan Semiconductor Manufacturing Co. (TSMC) on sound fundamentals," Tsai said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 2.61 percent to close at NT$2,355.00, contributing about 480 points to the Taiex's rise and sending the electronics index 2.62 percent higher.

Among other semiconductor stocks, memory chip supplier Nanya Technology Corp. rose 7.10 percent to end at NT$347.00, and ASIC designer Alchip Technologies Ltd. added 2.67 percent to close at NT$4,415.00.

Also in the tech sector, iPhone assembler and AI server Hon Hai Precision Industry Co. soared 10 percent, the maximum daily increase, to end at NT$289.00 after the company aimed to boost its annual earnings per share above NT$20 in two years amid the AI boom.

Quanta Computer Inc., another AI server supplier, also surged 10 percent to close at NT$339.00, and power management solution supplier Delta Electronics Inc. rose 2.30 percent to end at NT$244.50.

"With the market awash in liquidity, investors parked some of their money in select old economy stocks which had relatively low valuations," Tsai said.

Formosa Plastics Corp. rose 5.33 percent to close at NT$47.45, and Nan Ya Plastics Corp., the parent of Nanya Technology, jumped 8.40 percent to end at NT$98.10.

Asia Cement Corp. rose 4.94 percent to close at NT$34.00, and Lucky Cement Co. gained 7.23 percent to end at NT$207.90.

China Airlines rose 2.69 percent to close at NT$19.10, and EVA Airways gained 2.12 percent to end at NT$36.05.

In the financial sector, CTBC Financial Holding Co. rose 2.02 percent to close at NT$60.50, and Cathay Financial Holding Co. ended up 1.06 percent at NT$85.70, while Fubon Financial Holding Co. closed unchanged at NT$110.00.

"After a recent rally, I expect stiff technical resistance ahead of 45,000 points," Tsai said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$80.36 billion of shares on the main board on Friday.