Taiwan shares smash closing records after a U.S. tech rally

Taipei, June 3 (CNA) Shares in Taiwan closed at a new high Wednesday as an overnight rally among tech stocks in the United States triggered buying, particularly in the bellwether electronics sector, dealers said.

The Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 901.85 points, or 1.98 percent, at 46,459.16 after moving between 45,660.46 and 46,552.16. Turnover totaled NT$1.45 trillion (US$45.79 billion).

"Chip stocks in the U.S. market largely reflected optimism toward AI development as Nvidia's Jensen Huang spoke at the current Computex Taipei," Mega International Investment Services Corp. Alex Huang said. On Tuesday, the Philadelphia Semiconductor Index rose 5.87 percent.

"It was no surprise that TSMC (Taiwan Semiconductor Manufacturing Co.) led the electronics sector to move higher, boosting the Taiex to another closing high today," Huang said.

TSMC, which accounts for over 40 percent of total market value, closed up 1.89 percent at NT$2,425.00. The stock gains contributed 360 points to the Taiex's rise and sent the electronics index 1.76 percent higher.

Among other semiconductor stocks, IC packaging and testing firm ASE Technology Holding Co. gained 4.75 percent to end at NT$618.00 and semiconductor testing firm King Yuan Electronics Co. rose 5.22 percent to close at NT$322.50. Smartphone IC designer MediaTek Inc. added only 0.44 percent to end at NT$4,545.00.

Other AI-related stocks also attracted buying, with iPhone assembler and AI server maker Hon Hai Precision Industry Co. rising 2.49 percent to close at NT$309.00 and power management solution provider Delta Electronics Inc. gaining 4.12 percent to end at NT$2,455.00.

"With the market awash in liquidity, buying continued to rotate to the financial sector as investors took advantage of its relatively low valuation," Huang said. "Many financial firms benefited from handsome returns from their investments in the booming stock market."

President Securities soared 10 percent, President Securities Corp. surged 10 percent, the maximum daily increase, to close at NT$54.30, and Capital Securities Corp. rose 8.36 percent to end at NT$44.70.

CTBC Financial Holding Co. and KGI Financial Holding Co. jumped 10 percent to close at NT$70.50 and NT$25.70, respectively, while Fubon Financial Holding Co. lost 0.44 percent to end at NT$113.00.

In the old economy sector, Huang said the textile industry attracted strong buying amid optimism about demand for jerseys and other sports products ahead of the FIFA World Cup, which kicks off next week.

With the textile industry up 4.1 percent, Far Eastern New Century Corp. rose 4.00 percent to close at NT$27.30 and Eclat Textile Co. ended up 2.56 percent at NT$360.50.

"Judging from recent significant gains, investors appeared very bullish and they tended to focus on positive leads such as AI development but ignore the tension in the Middle East," Huang said. "Under such circumstances, it is very likely for the Taiex to challenge 47,000 points very soon."

According to the TWSE, foreign institutional investors bought a net NT$43.40 billion of shares on the main board Wednesday.