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Taiwan shares end above 15,000 points; TSMC hits new high

  • Taiwan shares end above 15,000 points; TSMC hits new high
    The weighted index on the Taiwan Stock Exchange (TWSE) or the Taiex ended up 98.00 points, or 0.66 percent, at the day's high of 15,000.03, off a low of 14,861.99. Turnover during the session totaled NT$347.2 billion (US$12.4 billion). Taiwan shares end above 15,000 points; TSMC hits new high
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By Focus Taiwan
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 Shares in Taiwan extended their momentum Tuesday from the previous session, closing above the 15,000 point mark, as the main board remained resilient amid ample liquidity, despite a drop on United States markets overnight, dealers said.

 

Buying focused on the bellwether electronics sector, with contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) ending at a record high, but many non-tech stocks stayed in the doldrums throughout the session, dealers said.

The weighted index on the Taiwan Stock Exchange (TWSE) or the Taiex ended up 98.00 points, or 0.66 percent, at the day's high of 15,000.03, off a low of 14,861.99. Turnover during the session totaled NT$347.2 billion (US$12.4 billion).

The market opened up 0.08 percent and fluctuated as it neared the stiff technical resistance mark of 15,000 points, after the Dow Jones Industrial Average sank 1.3 percent Monday ahead of the by-election in Georgia and amid worry over the escalation of COVID-19 infections in the U.S., dealers said.

However, TSMC attracted late buying on the Taiex, as investors were encouraged by a 2.44 percent gain in its American depositary receipts on the U.S. markets Monday, and their interest spread to other tech heavyweights, helping to vault the broader market past 15,000 points by the end of the session, dealers said.

"It was another liquidity-driven session today, as many investors ignored the volatility of the U.S. markets," Concord Securities analyst Kerry Huang said. "With an increasing number of foreign investors moving their funds into the market, they rushed to park their money in benchmark stocks such as TSMC."

TSMC, the most heavily weighted stock on the local market, rose 1.12 percent to end at the day's high of NT$542.00, its highest ever closing price, driving up its market capitalization by NT$155.5 billion to a record high of NT$14.05 trillion.

The total trading volume of the stock was around 34.23 million shares, with an average transaction price of NT$538.49, amounting to turnover of NT$18.43 billion, or 5.3 percent of the total on the main board.

TSMC's gains Tuesday pushed up the electronics sector and the semiconductor sub-index by 1.11 percent and 1.09 percent, respectively, and contributed about 51 points to the Taiex's rise. (TSMC to build advanced IC packaging, testing plant in Japan: report)

"In addition to TSMC, select tech stocks also attracted interest, with Hon Hai Precision Industry Co. in focus, lending further support to the broader market," Huang said.

Hon Hai, iPhone assembler and the world's largest electronics maker, gained 4.10 percent to close at NT$104.00, after an 8.59 percent hike on Monday.

Hon Hai, which had been a market laggard for a long time, attracted interest again after foreign institutional investors on Monday bought a net 46.74 million shares, the biggest net buy of a Taiex stock, dealers said.

Also in the tech sector, Nanya Printed Circuit Board Corp. gained 4.50 percent to close at NT$209.00, United Microelectronics Corp., a smaller contract chipmaker, rose 1.76 percent to end at NT$46.35, and multi-layer ceramic capacitor supplier Yageo Corp. added 1.54 percent to finish at NT$528.00.

Largan Precision Co., a smartphone camera lens supplier to Apple Inc., meanwhile, dropped 1.04 percent to end at NT$3,315.00, ahead of its investor conference Thursday.

"The electronics sector remained the main driver, accounting for about 70 percent of the market's total turnover," Huang said. "On the other hand, non-tech stocks largely lost their luster."

In the old economy sector, Formosa Plastics Corp. dropped 1.76 percent to close at NT$95.00, and Formosa Chemicals & Fibre Corp. lost 1.54 percent to end at NT$83.30, as international crude oil prices fell amid worries over weaker demand.

Among other stocks in the sector, Chung Hwa Pulp Corp. shed 2.94 percent to close at NT$11.55, and Longchen Paper & Packaging Co. finished 2.61 percent lower at NT$22.40.

In the financial sector, which gained 0.14 percent, Cathay Financial Holding Co. rose 0.12 percent to close at NT$42.10, and Fubon Financial Holding Co. ended 0.22 percent higher at NT$46.35.

"Investors should keep a close eye on Largan's investor conference for information about possible foreign exchange losses in the fourth quarter, as the Taiwan dollar continues an uptrend against the U.S. dollar," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$2.65 billion worth of shares on the main board Tuesday.