Taipei: Shares in Taiwan closed higher Friday as tech heavyweights, including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), rebounded from earlier weakness on bargain hunting. The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 290.55 points, or 0.65 percent, at 45,224.29, fluctuating between 44,583.87 and 45,254.84. Turnover totaled NT$719.28 billion (US$22.57 billion), down from a five-day average of NT$880 billion.
According to Focus Taiwan, bargain hunters moved in after the Taiex dipped below the 45,000 mark amidst volatility in U.S. markets, as noted by Hua Nan Securities analyst Kevin Su. Large-cap tech stocks, including TSMC, received a boost, aiding the Taiex's return to positive territory. TSMC, representing over 40 percent of the market's total value, rose 1.47 percent to close at NT$2,410, recovering from a low of NT$2,365. The stock's resurgence contributed to the Taiex's recovery of approximately 360 points.
Su highlighted investors' optimistic outlook on TSMC's sales growth during the ongoing AI boom, referencing the company's projection of more than 40 percent sales growth by 2026 in U.S. dollar terms. Other semiconductor stocks, such as smartphone IC designer MediaTek Inc., rose 2.43 percent to end at NT$3,790, while memory chip suppliers Nanya Technology Corp. and Winbond Electronics Corp. saw gains of 2.13 percent and 2.55 percent, respectively, amid a global supply shortage.
In the electronics component sector, Delta Electronics Inc. added 0.29 percent to close at NT$1,750, while Yageo Corp. ended down 1.42 percent at NT$554. Within the tech sector, iPhone assembler and AI server supplier Hon Hai Precision Industry Co. closed down 0.41 percent at NT$245.50, whereas Quanta Computer Inc., another AI server supplier, increased by 1.68 percent to NT$321.50.
Su mentioned that old economy stocks largely moved higher in line with the Taiex, with the petrochemical index rising 2.28 percent due to a spike in crude oil prices. Nan Ya Plastics Corp. rose 3.23 percent to close at NT$192.00, and Formosa Plastics Corp. gained 2.77 percent to end at NT$59.46, driven by their efforts to develop raw materials for electronic devices.
Amid escalating freight rates, Evergreen Marine Corp., Taiwan's largest container cargo shipper, rose 2.42 percent to NT$51.50, while bulk cargo shipper First Steamship Co. surged 10 percent, the maximum daily increase, to end at NT$7.39. The financial sector, which rose 2.53 percent on stable dividend payments, saw Fubon Financial Holding Co. closing up 4.69 percent at NT$134 and Cathay Financial Holding Co. ending up 2.87 percent at NT$100.50.
Despite the gains in the Taiex, Su noted that turnover remained low as investors awaited a speech by Federal Reserve Chairman Kevin Warsh at the upcoming Jackson Hole Economic Policy Symposium. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$28.31 billion worth of shares on the main board Friday.