Taiex ends up as chip stocks rebound but turnover stays moderate

Taipei, Aug. 25 (CNA) Shares in Taiwan closed higher Tuesday as major semiconductor stocks recouped earlier losses on a rally in South Korea, while turnover remained moderate with many investors on the sidelines, awaiting new leads, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 407.14 points, or 0.91 percent, at the day's high of 45,169.46, off a low of 44,210.31. Turnover totaled NT$696.05 billion (US$21.88 billion).

"Buying in semiconductor stocks emerged in the second half of the morning session and continued into the end of the trading as investors took cues from a rally in Seoul," Mega International Investment Services analyst Alex Huang said, citing the gains posted by memory chip supplier SK Hynix Inc.

Therefore, Taiwanese memory chip firms rebounded from earlier weakness with Nanya Technology Corp. up 1.80 percent to close at NT$510.00, and Winbond Electronics Corp. up 1.13 percent to end at NT$179.00.

"More important, bargain hunters picked up TSMC (Taiwan Semiconductor Manufacturing Co.) to give the Taiex a significant boost," Huang said.

Contract chipmaker TSMC, which accounts for over 40 percent of total market value, gained 1.05 percent to close at NT$2,400.00. The stock's recovery from the day's low helped the Taiex recoup about 400 points.

While smartphone IC designer MediaTek Inc. lost 0.80 percent to end at NT$328.00, the stock still came off its low.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. closed down 0.21 percent at NT$243.00, while Quanta Computer Inc., another AI server producer, gained 1.08 percent to end at NT$328.50.

"Despite the gains, turnover still failed to expand as many bulls and bears in the market were waiting for new leads for directions," Huang said. "Nvidia's earnings [Wednesday] and Fed Chairman Kevin Warsh's speech planned at the Jackson Hole Economic Symposium in the upcoming weekend are worthy watching."

Huang said buying also rotated to nontech stocks as the petrochemical industry moved higher by 1.82 percent. Nan Ya Plastics Corp., the parent of Nanya Technology, gained 4.72 precent to close at NT$188.50 and affiliate Formosa Plastics Corp. ended up 1.40 percent at NT$57.80.

Among robotics related stocks, machinery makers Airtac International Group rose 1.74 percent to close at NT$1,460.00 and Hiwin Technologies Corp. ended up 0.58 percent at NT$345.50.

Led by Fubon Financial Holding Co., which soared 7.20 percent to close at NT$141.50 after the company reported a 65.25 percent return from its stock investments in Taiwan in the first half of this year, the financial index was up 2.31 percent, serving as another driver to the Taiex's gains, Huang said.

"Despite today's rebound, it remained too early to say whether the Taiex has climbed out of consolidation," Huang said. "The next technical hurdles will be seen ahead of the 10-day moving average of 45,327 points."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$786.58 million of shares on the main board Tuesday.