Taiex closes slightly higher after surging to record intraday high

Taipei, Sept. 22 (CNA) Shares in Taiwan closed slightly higher Tuesday after the benchmark Taiex surged nearly 900 points to a record intraday high, prompting investors to lock in profits and limiting the day's gains, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 81.33 points, or 0.17 percent, at 47,800.17 after reaching 48,601.53, surpassing the previous intraday record of 48,218.87 set on June 23. Turnover totaled NT$1.02 trillion (US$32.17 billion).

Mega International Investment Service analyst Alex Huang said the early gains were led by major electronics stocks and largely reflected an overnight rally in the United States, where the tech-heavy Nasdaq rose 1.49 percent to a record close. Falling global crude oil prices also eased inflation concerns, he said.

"But profit-taking soon dictated the movement after the main board had bounced back sharply in the previous few sessions," Huang said.

The Taiex had surged 2,207.35 points, or 4.85 percent, over the previous four trading sessions.

"After the recent rally, the Taiex needs some time to consolidate before making another takeoff. I think an uptrend remains intact as tech heavyweights will continue to benefit from the current AI boom," Huang said.

As investors rushed to lock in profits, the electronics index ended up 0.36 percent at 3,034.51, retreating from an intraday high of 3,088.43.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, fell 0.81 percent to close at NT$2,460.00 after hitting NT$2,510.00. TSMC's retreat from its intraday high cost the Taiex about 400 points.

Memory chip suppliers also came under pressure after recent sharp gains. Nanya Technology Corp. fell 3.68 percent to close at NT$497.00, while Winbond Electronics Corp. lost 1.72 percent to end at NT$171.00.

IC packaging and testing services provider ASE Technology Holding Co. rose 4.52 percent to NT$693.00, while smartphone IC designer MediaTek Inc. gained 3.39 percent to NT$5,180.00, although both retreated from their intraday highs.

Elsewhere in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 1.20 percent to NT$253.00, while power management solutions provider Delta Electronics Inc. gained 1.33 percent to NT$1,900.00.

Quanta Computer Inc., another AI server supplier, fell 0.73 percent to NT$342.00.

Huang said the financial sector also came under profit-taking pressure, with the financial index falling 0.67 percent.

Cathay Financial Holding Co. lost 0.88 percent to close at NT$112.00, while CTBC Financial Holding Co. fell 1.14 percent to NT$69.60.

Among old-economy stocks, many of which retreated from their intraday highs, China Steel Corp. closed unchanged at NT$18.65, while food manufacturer Uni-President Enterprises Corp. edged down 0.13 percent to NT$74.60.

As crude oil prices fell, Formosa Petrochemical Corp. lost 1.47 percent to NT$87.20, while Formosa Chemicals & Fibre Corp. declined 1.92 percent to NT$66.50.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$44.73 billion in shares on the main board Tuesday.