Taiwan shares end up but off high ahead of Fed chair's speech

Taipei, Aug. 28 (CNA) Shares in Taiwan closed higher Friday ahead of a planned speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium in which he was expected to offer insights into the Fed's interest rate policy, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 356.23 points, or 0.77 percent, at 46,331.45 after moving between 46,070.83 and 46,574.52. Turnover totaled NT$1.02 trillion (US$32.29 billion).

"Technically speaking, when the Taiex breached 46,402 points, the intraday high on Aug. 14, caution toward profit-taking arose," Hua Nan Securities analyst Kevin Su said.

"Moreover, many investors preferred to wait for Warsh's speech after the latest PCE (personal consumption expenditure) price index came in slightly higher than expected," Su said.

The bellwether electronics sector led Friday's upturn in the Taipei market on the back of Nvidia Corp.'s strong results, Su said.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 0.41 percent to close at NT$2,420.00, off a high of NT$2,445.00.

TSMC's retreat from the day's high cost the Taiex about 200 points.

"TSMC still gave support to the market but the stock faced technical hurdles when it moved closer to NT$2,450.00, making it impossible for the Taiex to sustain its earlier gains," Su said.

Among other semiconductor stocks, smartphone IC designer MediaTek Inc. rose 3.10 percent to close at NT$3,985.00, and IC packaging and testing firm ASE Technology Holding Co. ended up 2.64 percent at NT$621.00.

Memory chip suppliers came under pressure as the share prices of South Korean counterparts Samsung Electronics Co. and SK Hynix Inc. fell, Su said.

Nanya Technology Corp. closed down 0.18 percent at NT$540.00 and Winbond Electronics Corp. ended down 2.42 percent at NT$181.50.

Outside the semiconductor industry, iPhone assembler and AI server maker Hon Hai Precision Industry Co. added 0.40 percent to close at NT$253.00, and power management solution provider Delta Electronics Inc. ended up 3.39 percent at NT$1,830.00.

Su said the financial sector gave an additional boost to the Taiex as higher bond yields in the U.S. pushed up financial firms' overseas investment returns.

With the financial index up 1.6 percent, Cathay Financial Holding Co. rose 2.93 percent to close at NT$105.50, and Fubon Financial Holding Co. ended up 1.77 percent at NT$144.00.

In the old economy sector, Nan Ya Plastics Corp. fell 3.08 percent to close at NT$220.50 due to the losses posted by subsidiary Nanya Technology, and affiliate Formosa Chemicals & Fibre Corp. ended down 1.74 percent at NT$62.10.

Food brand Uni-President Enterprises Corp. slid 1.82 percent to close at NT$75.70, but Wei Chuan Foods Corp. ended up 0.41 percent at NT$12.25.

"As rotational buying remains active in the local market, the Taiex could see strong technical support ahead of 45,000 points in the short term," Su said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$41.59 billion of shares on the market Friday.