Taiex ends higher but turnover capped ahead of U.S. inflation data

Taipei, Aug. 12 (CNA) Shares in Taiwan closed higher Wednesday led by AI-related stocks, while turnover was limited ahead of U.S. consumer price index (CPI) data due later in the day, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 397.35 points, or 0.88 percent, at 45,518.07. Turnover totaled NT$858.73 billion (US$26.66 billion), below the average of NT$892.1 billion for the previous five sessions.

"Although many stocks in the United States came under pressure overnight on higher crude oil prices amid tensions in the Middle East, AI-related stocks still moved higher, which sparked buying in their counterparts in Taiwan today," Hua Nan Securities analyst Kevin Su said, citing a 0.87 percent increase on the Philadelphia Semiconductor Index.

"Taiwan's AI-related stocks, particularly TSMC (Taiwan Semiconductor Manufacturing Co.) and Hon Hai Precision Industry Co. benefited from last-ditch buying, giving an additional boost to the Taiex," Su said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, rose 0.84 percent to close at NT$2,415.00, contributing about 160 points to the Taiex.

iPhone assembler and AI server maker Hon Hai, also known as Foxconn globally, gained 2.66 percent to end at NT$270.00 as investors appeared upbeat that the company will provide positive leads at an investor conference scheduled to start after the market closes.

Other major AI server suppliers also attracted strong buying with Compal Electronics Inc. soaring 10 percent, the maximum daily increase, to close at NT$39.90, and Quanta Computer Inc. rising 3.17 percent to end at NT$325.50.

Among other semiconductor stocks, shares in TSMC's application-specific integrated circuit (ASIC) design subsidiary Global Unichip Corp. rose 3.53 percent to close at NT$5,130.00, and the chipmaker's IC assembly equipment supplier Scientech Corp. added 4.56 percent to end at NT$734.00.

Bucking the upturn, smartphone IC designer MediaTek Inc. lost 0.12 percent to close at NT$4,015.00, and power management solution provider Delta Electronics Inc. ended down 0.83 percent at NT$1,790.00.

Old economy stocks were largely mixed "but some machinery makers posted gains on strength in robotics production," Su said.

Among them, Hiwin Mikrosystem Corp. closed up 3.89 percent at NT$227.00, and Airtac International Group ended 2.24 percent higher at NT$1,595.00.

Also in the old economy sector, Formosa Plastics Corp. rose 1.08 percent to close at NT$56.20, but Nan Ya Plastics Corp. ended down 0.53 percent at NT$189.00.

China Steel Corp. closed unchanged at NT$19.75, while Tung Ho Steel Corp. ended down 1.99 percent at NT$83.80.

In the financial sector, Cathay Financial Holding Co. closed up 0.10 percent at NT$99.70, while Fubon Financial Holding Co. ended down 0.78 percent at NT$127.00.

"Despite the Taiex's gains, turnover failed to expand. I think many investors preferred to stay on the sidelines, awaiting the July CPI for more clues about the Federal Reserve's next move," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$11.02 billion of shares on the main board Wednesday.