Taiex ends little changed as TSMC's rebound erases earlier losses

Taipei, July 16 (CNA) Shares in Taiwan closed little changed Thursday after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) rebounded from the day's low amid continued enthusiasm over artificial intelligence (AI), helping the broader market recover most of its earlier losses, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 6.61 points, or 0.01 percent, at 45,624.98 after moving between 44,970.64 and 45,855.02. Turnover totaled NT$900.84 billion (US$27.98 billion).

The index fell more than 600 points in morning trading, led by semiconductor stocks after U.S. chip shares declined overnight.

"But investors here started picking up bargains after the initial dip as the tech-heavy Seoul market rebounded, pushing the Taiex higher through the close," Da Hwa International Securities Investment Consulting analyst Chang Chih-cheng said.

Chang said TSMC was the primary target of bargain hunting. The stock rose 1.23 percent to close at NT$2,470.00 after coming off an intraday low of NT$2,430.00. Its rebound from the day's low helped the Taiex recover about 320 points.

"The interest in TSMC came on hopes that the chipmaker would provide positive guidance at its investor conference after the market closed," Chang said. "Investors remained upbeat about AI development."

After the market closed, TSMC reported a record quarterly net profit of NT$706.56 billion for the second quarter, driven by AI-related demand for its advanced chips.

Buying also spread to other semiconductor stocks, allowing many to either return to positive territory or trim earlier losses.

Among them, smartphone IC designer MediaTek Inc. fell 1.07 percent to NT$3,700.00 and IC packaging and testing firm ASE Technology Holding Co. slipped 0.15 percent to NT$682.00, while ASIC designer Alchip Technologies Ltd. rose 0.94 percent to NT$3,770.00.

iPhone assembler and AI server maker Hon Hai Precision Industry Co. gained 1.46 percent to NT$242.50, while power management solutions provider Delta Electronics Inc. rose 0.79 percent to NT$1,905.00.

Chang said non-tech stocks were mixed as investor attention remained focused on the electronics sector.

In the old economy sector, Formosa Plastics Corp. fell 0.15 percent to NT$65.60, Formosa Chemicals & Fibre Corp. shed 2.68 percent to NT$68.90 and Nan Ya Plastics Corp. lost 2.86 percent to NT$221.00. Taita Chemical Co., however, rose 0.33 percent to NT$15.15.

Eclat Textile Co. gained 2.42 percent to NT$339.00 and Far Eastern New Century Corp. added 0.91 percent to NT$27.80, while Shihlin Electric & Engineering Corp. fell 2.63 percent to NT$204.00 and Fortune Electric Co. lost 2.54 percent to NT$691.00.

The financial sector edged down 0.03 percent. Fubon Financial Holding Co. fell 2.72 percent to NT$125.00, while Cathay Financial Holding Co. rose 0.72 percent to NT$97.30.

According to the Taiwan Stock Exchange, foreign institutional investors were net sellers of NT$48.33 billion worth of shares on the main board Thursday.