Taiwan shares end slightly higher after recovering from earlier losses

Taipei, Aug. 11 (CNA) Shares in Taiwan closed slightly higher Tuesday after recouping earlier losses, as bargain hunters picked up select electronic component stocks despite continued military tensions in the Middle East, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 191.96 points, or 0.43 percent, at 45,120.72 after moving between 44,652.06 and 45,195.41. Turnover totaled NT$869.02 billion (US$26.96 billion).

"The initial losses largely reflected the stock markets in the United States overnight after a spike in crude oil prices amid uncertainty over conflict in the Middle East," Cathay Futures Consultant analyst Tsai Ming-han said.

Overnight, U.S. President Donald Trump imposed new conditions, demanding compensation from Iran for U.S. military deaths over multiple decades, which dimmed hopes of any immediate reopening of the Strait of Hormuz, sending oil prices higher.

"However, in Taipei, investors quickly turned calm and appeared willing to hunt bargains in AI-related stocks," Tsai said. "Momentum created by robust demand for AI gadgets remained in place, helping the Taiex return to positive territory."

With the electronics index up 0.54 percent, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 0.63 percent to close at NT$2,395.00, contributing about 120 points to the Taiex's rise.

Smartphone IC designer MediaTek Inc. gained 1.52 percent to end at NT$4,020.00, while IC packaging and testing firm ASE Technology Holding Co. lost 0.16 percent to close at NT$629.00 and memory chip supplier Nanya Technology Corp. fell 2.59 percent to end at NT$489.00.

Buying also focused on passive electronics suppliers with Yageo Corp., the world's third-largest multi-layer ceramic capacitor company, soaring 7.68 percent to close at NT$617.00 and Walsin Technology Corp. surging 10 percent, the maximum daily increase, to end at NT$239.50, Tsai said.

Bucking the upturn, iPhone assembler and AI server maker Hon Hai Precision Industry Co. fell 0.57 percent to close at NT$263.00, and power management solution provider Delta Electronics Inc. ended down 0.55 percent at NT$1,805.00.

Amid rising crude prices, shares in Formosa Petrochemical Corp. rose 3.04 percent to close at NT$71.10, and Nan Ya Plastics Corp. gained 2.70 percent to end at NT$190.00.

Food brand Uni-President Enterprises Corp. added 0.53 percent to close at NT$75.90, and cooking oil supplier Great Wall Enterprise Co. rose 1.32 percent to end at NT$53.90.

However, China Airlines lost 0.98 percent to close at NT$20.25, and EVA Airways shed 2.11 percent to end at NT$41.75.

In the financial sector, which shed 1.13 percent, Cathay Financial Holding Co. lost 1.39 percent to close at NT$99.60, and Fubon Financial Holding Co. fell 0.39 percent to end at NT$128.00.

"Despite the recovery, the Taiex remained in consolidation. I expect the index will move just up and down close to the 60-day moving average (around 44,497 points)," Tsai said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$28.18 billion of shares on the main board Tuesday.