Taiwan shares end higher as large-cap stocks reverse earlier losses

Taipei, Aug. 21 (CNA) Shares in Taiwan closed higher Friday as tech heavyweights, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), rebounded from earlier weakness on bargain hunting.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 290.55 points, or 0.65 percent, at 45,224.29, moving between 44,583.87 and 45,254.84. Turnover totaled N$719.28 billion (US$22.57 billion), down from a five-day average of NT$880 billion.

"Judging from today's movement, bargain hunters moved in after the Taiex dipped below 45,000 amid volatility in U.S. markets," Hua Nan Securities analyst Kevin Su said. "Large-cap tech stocks, including TSMC, got a boost, helping the Taiex return to positive territory."

TSMC, which accounts for more than 40 percent of the market's total value, rose 1.47 percent to close at NT£2,410, off a low of NT$2,365. The stock's rebound helped the Taiex recover about 360 points.

"Today's buying showed investors remained upbeat about the chipmaker's sales growth during the current AI boom," Su said, citing the company's forecast that its sales will grow more than 40 percent in 2026 in U.S. dollar terms.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. rose 2.43 percent to end at NT$3,790, while memory chip suppliers Nanya Technology Corp. rose 2.13 percent to close at NT$528 and Winbond Electronics Corp. gained 2.55 percent to NT$181 amid a global supply shortage.

In the electronics component industry, power management solutions provider Delta Electronics Inc. added 0.29 percent to close at NT$1,750, while capacitor maker Yageo Corp. ended down 1.42 percent at NT$554.

Also in the tech sector, iPhone assembler and AI server supplier Hon Hai Precision Industry Co. closed down 0.41 percent at NT$245.50, while Quanta Computer Inc., another AI server supplier, ended up 1.68 percent at NT$321.50.

Su said old economy stocks largely moved higher in line with the Taiex, with the petrochemical index rising 2.28 percent on a spike in crude oil prices.

"Some of them, such as Nan Ya Plastics Corp., attracted interest because of their efforts to develop raw materials used in electronic devices," he said.

Nan Ya Plastics rose 3.23 percent to close at NT$192.00, and affiliate Formosa Plastics Corp. gained 2.77 percent to end at NT$59.46.

Amid rising freight rates, Evergreen Marine Corp., Taiwan's largest container cargo shipper, rose 2.42 percent to close at NT$51.50. Bulk cargo shipper First Steamship Co. soared 10 percent, the maximum daily increase, to end at NT$7.39.

In the financial sector, which rose 2.53 percent on stable dividend payments, Fubon Financial Holding Co. closed up 4.69 percent at NT$134, while Cathay Financial Holding Co. ended up 2.87 percent at NT$100.50.

"Despite the gains in the Taiex, turnover remained low as many investors stayed on the sidelines, awaiting a speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium next week," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$28.31 billion worth of shares on the main board Friday.