Taiwan shares end up as tech sector gains amid eased AI concerns

Taipei, Aug. 3 (CNA) Shares in Taiwan extended momentum Monday from a session earlier as tech stocks continued to ride the wave of AI development amid eased concerns over massive spending in the field after Amazon's latest results, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 266.66 points, or 0.62 percent, at 43,386.41 after moving between 42,780.42 and 43,784.19. Turnover totaled NT$844.53 billion (US$26.16 billion).

Hua Nan Securities analyst Kevin Su said that after Friday's biggest single-session gain of 3,186.45 points, the local main board continued its uptrend Monday, reversing initial mild losses caused by profit taking.

"AI enthusiasm kept dictating local trading as Amazon reported its largest quarterly revenue growth in over four years, easing worries over overspending on AI," Su said. "Many AI-related stocks attracted buying, while contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) took a pause."

Smartphone IC designer MediaTek Inc. soared 10 percent, the maximum daily increase, to close at NT$3,910.00 amid optimism toward its efforts in application-specific integrated circuit (ASIC) development.

IC packaging and testing services provider ASE Technology Holding Co. surged 10 percent to end at NT$610.00, while memory chip supplier Nanya Technology Corp. jumped 10 percent to close at NT$396.50 and rival Winbond Electronics Corp. also soared 10 percent to end at NT$143.00 on a spike in product prices.

Bucking the upturn, TSMC, which accounts for over 40 percent of total market value, lost 2.27 percent to close at NT$2,370.00 after it hit the 10 percent increase limit Friday.

"TSMC has moved into a period of consolidation but it was technical in nature as its fundamentals remain sound," Su said, expecting the stock to consolidate between NT$2,200 and NT$2,500 shortly.

Outside the semiconductor industry, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 1.00 percent to end at NT$253.00. Wistron Corp., another AI server supplier, rose 5.68 percent to close at NT$186.00 and its cloud service solution subsidiary Wiwynn Corp. soared 10 percent to end at NT$5,925.00.

Nontech stocks appeared mixed. "But buying rotated to robotics-related stocks before the Automation Taipei exhibition (slated to open on Aug. 19)," Su said.

Machinery maker Hiwin Technologies Corp. rose 9.03 percent to close at NT$332.00, and its subsidiary Hiwin Microsystem Corp. also gained 9.14 percent to end at NT$197.00.

Formosa Plastics Corp. fell 2.18 percent to close at NT$53.80, while Nan Ya Plastics Corp. rose 3.45 percent to end at NT$165.00 with buying sparked by the gains posted by its subsidiary Nanya Technology.

In the financial sector, Cathay Financial Holding Co. lost 0.99 percent to close at NT$100.50 and Fubon Financial Holding Co. ended down 0.38 percent at NT$129.50.

"The earnings season at home and in the United States is still underway. So, keep a close eye on it," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$19.19 billion of shares on the main board Monday.