Taiex posts record one-day point gain as TSMC hits 10% limit

Taipei, July 31 (CNA) Shares in Taiwan posted their largest-ever single-day point gain Friday, soaring over 3,000 points, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) surged 10 percent, the maximum daily increase, following strong rallies in the United States and in South Korea, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, closed up 3,186.45 points, or 7.98 percent, at 43,119.75 after moving between 41,610.41 and 43,214.36. Friday's gains surpassed the previous record one-day increase of 1,783.17 points on July 21.

Turnover totaled NT$833.71 billion (US$25.75 billion).

"The U.S. tech rally came after strong earnings posted by Microsoft and Amazon, which eased concerns over massive AI investments," Da Hwa International Securities Investment Consulting analyst Chang Chih-cheng said.

"Moreover, a V-shaped rebound in the Seoul market also encouraged investors here to hunt bargains," Chang said. The Taiex had plunged 10.96 percent over the previous five trading sessions.

Chang said the bellwether electronics sector led the broader market's rebound.

"TSMC returned to the spotlight as the stock looked attractive at relatively low valuations," Chang said. "The buying also spread to other semiconductor stocks."

After its American depositary receipts (ADRs) gained 7.64 percent overnight, TSMC, which accounts for over 40 percent of total market capitalization, rose 10 percent to close at NT$2,425.00, contributing 1,760 points to the Taiex's gain and pushing the electronics index up 9.19 percent.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. surged 10 percent to close at NT$3,555.00. Meanwhile, buoyed by a strong rebound by Samsung Electronics and SK Hynix in Seoul, Taiwanese memory chip suppliers Nanya Technology Corp. and Winbond Electronics Corp. also jumped 10 percent to close at NT$360.50 and NT$130.00, respectively. IC packaging and testing firm ASE Technology Holding Co. likewise soared 10 percent to end at NT$555.00.

Chang said AI server makers also rebounded after recent heavy losses, with Hon Hai Precision Industry Co. rising 9.15 percent to close at NT$250.50 and Wistron Corp. jumping 10 percent to end at NT$176.00.

"Many non-tech stocks also benefited from the improved market sentiment, lending additional support to the Taiex," Chang said.

Nan Ya Plastics Corp. led the upturn, soaring 10 percent to close at NT$159.50, reflecting subsidiary Nanya Technology's solid gains, while Formosa Plastics Corp. rose 1.85 percent to end at NT$55.00.

Fortune Electric Co. gained 6.33 percent to close at NT$705.00 and Shihlin Electric & Engineering Corp. added 6.56 percent to end at NT$195.00.

With the financial index rising 4.45 percent, Cathay Financial Holding Co. gained 6.62 percent to close at NT$101.50, while Fubon Financial Holding Co. ended up 4.84 percent at NT$130.00.

"An uptrend is likely to continue as many buy orders remain in the pipeline," Chang said. "However, the Taiex could encounter technical resistance near the 44,100-point level."

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$67.55 billion worth of shares on the main board Friday.