Taiwan shares close higher on thin turnover ahead of Fed decision

Taipei, Sept. 16 (CNA) Shares in Taiwan closed higher Wednesday, but turnover remained low as investors stayed cautious ahead of a U.S. Federal Reserve policy decision due later in the day, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 337.41 points, or 0.74 percent, at 45,848.90 after moving between 45,546.56 and 46,077.82. Turnover totaled NT$643.77 billion (US$20.22 billion), below the average of NT$689.2 billion over the previous five sessions.

"Today's gains were technical in nature as the Taiex rebounded from losses in the past few sessions," Hua Nan Securities analyst Kevin Su said. Over the previous four sessions, the Taiex had fallen 1,671.87 points, or 3.54 percent.

"But investors showed little interest in chasing prices as many of them awaited the Fed's decision and signals about its next move," Su said.

He said investors were particularly focused on comments from Fed Chairman Kevin Warsh and the Fed's dot plot, which shows individual policymakers' projections for interest rates.

"Today's relatively thin turnover makes it difficult for the Taiex to break out of a narrow range," Su said.

Su said the tech sector drove the Taiex higher amid optimism over artificial intelligence-related demand, with buying focused on memory chip suppliers and select electronic component makers.

Memory chip suppliers Nanya Technology Corp. rose 5.96 percent to close at NT$492.50, while Winbond Electronics Corp. gained 5.96 percent to end at NT$169.00.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, closed unchanged at NT$2,380.00, while its application specific integrated circuit (ASIC) design subsidiary, Global Unichip Corp., rose 2.24 percent to NT$6,170.00.

Smartphone IC designer MediaTek Inc. closed up 2.26 percent at NT$4,530.00.

Among electronic component makers, power management solutions provider Delta Electronics Inc. rose 2.40 percent to close at NT$1,710.00, while printed circuit board supplier Compeq Manufacturing Co. added 2.97 percent to end at NT$225.00.

iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 0.61 percent to close at NT$248.00, while Quanta Computer Inc., another AI server producer, gained 2.25 percent to end at NT$340.50.

"Financial stocks moved higher on hopes that a rate hike by the Fed will boost their overseas interest income," Su said.

With the financial sector up 1.43 percent, Cathay Financial Holding Co. gained 2.27 percent to close at NT$112.50, while Fubon Financial Holding Co. rose 1.32 percent to end at NT$153.00.

Among old economy stocks, Shihlin Electric & Engineering Corp. added 0.26 percent to close at NT$195.50 in a technical rebound, while Fortune Electric Co. gained 1.73 percent to end at NT$706.00.

China Steel Corp., Taiwan's largest steelmaker, closed unchanged at NT$18.65, while Tung Ho Steel Corp. rose 0.25 percent to end at NT$81.10.

"Taiwan's central bank will make its decision Thursday afternoon," Su said. "If the central bank follows its foreign counterparts in raising rates, the Taiex could be affected."

Despite the Taiex's gains, foreign institutional investors sold a net NT$17.980 billion worth of shares on the main board Wednesday, according to the Taiwan Stock Exchange.