Taiex posts biggest point gain ever on strong tech stock rebound

Taipei, July 21 (CNA) Shares in Taiwan posted the largest single session gain in Taiex history Tuesday as the bellwether electronics sector staged a strong rebound that was triggered by semiconductor rallies in the United States and South Korea, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 1,783.17 points, or 4.20 percent, at the day's high of 44,232.87, edging above the previous record single-day gain of 1,778.51 seen on May 4. Turnover totaled NT$835.62 billion (US$25.85 billion).

"A comeback made by semiconductor stocks in the U.S. market overnight prompted bargain hunters here to jump in," Hua Nan Securities analyst Kevin Su said, citing a 0.60 percent rise on the Philadelphia Semiconductor Index on Monday.

"Moreover, the Seoul market has stabilized after a recent sell-off caused by deleveraging among tech stocks, providing more support to the Taiex throughout the session," Su said.

The Kospi index ended up over 4 percent Tuesday, led by SK Hynix Inc. and Samsung Electronics Corp.

Su said large-cap semiconductor stocks in Taiwan simply followed suit, boosting the bellwether electronics index and semiconductor sub-index by 4.81 percent and 4.50 percent, respectively.

"TSMC (Taiwan Semiconductor Manufacturing Co.) was one of the top picks today after the stock had been hammered in line with chip stocks overseas last week," Su said. "Its fundamentals remain solid in the AI era."

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 3.88 percent to close at NT$2,410.00, contributing about 720 points to the Taiex's rise.

Buying spread to other chip stocks, with smartphone IC designer MediaTek Inc. soaring 10 percent, the maximum daily increase, to end at NT$3,670.00 and IC packaging and testing services provider ASE Technology Holding Co. rising 6.03 percent to close at NT$633.00.

Memory chip supplier Nanya Technology Corp. added 6.30 percent to end at NT$405.00.

Outside the semiconductor industry, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 4.90 percent to close at NT$246.00, and Yageo Corp., the world's third largest multi-layer ceramic capacitor (MLCC) supplier, also gained 6.35 percent to end at NT$670.00.

"Non-tech stocks also attracted bargain hunters. Today, 'military concept' stocks were highlighted," Su said. Among them, aircraft maintenance service provider Air Asia Co. and fighter jet maker Aerospace Industrial Development Corp. surged 10 percent to close at NT$58.90 and NT$71.50, respectively.

Nanya Plastics Corp. gained 4.83 percent to close at NT$195.50, and Formosa Plastics Corp. ended up 3.96 percent at NT$63.00.

In the financial services sector, Cathay Financial Holding Co. added 1.91 percent to close at NT$95.80, while Fubon Financial Holding Co. ended unchanged at NT$123.50.

Despite the Taiex's strong showing, foreign institutional investors remained on the sell side, with net selling of NT$4.33 billion in shares on Tuesday after a net sell of NT$6.03 billion Monday, according to Taiwan Stock Exchange data.