TAIPEI: Shares in Taiwan experienced moderate gains on Tuesday as turnover remained thin, with investors largely opting to stay cautious as the U.S. presidential election commenced, according to market dealers. The Taiex, the main index on the Taiwan Stock Exchange (TWSE), closed up by 141.40 points or 0.62 percent, reaching 23,106.79. The index fluctuated between 22,849.83 and 23,178.80 throughout the session, with the total turnover amounting to NT$328.48 billion (approximately US$10.27 billion). According to Focus Taiwan, the market initially opened with a decline of 0.41 percent, dropping further to its lowest point of the day in the early morning session, down about 115 points. This initial dip was influenced by a 0.61 percent drop on the Dow Jones Industrial Average and a 0.33 percent decline on the Nasdaq index overnight, as U.S. markets showed little movement ahead of the election. However, the Taiex regained strength in the mid-morning session, driven by buying interest in select large-cap electroni cs stocks, notably Taiwan Semiconductor Manufacturing Co. (TSMC), as well as stocks in the shipping and electric machinery sectors. This resurgence in buying activity helped propel the broader market back into positive territory, allowing it to surpass the 20-day moving average of 23,072 points by the close of the session. Concord Securities analyst Kerry Huang noted, "Judging from today's rebound, I suspect some investors aimed to push the index above the nearest technical resistance to keep the market technically healthy." Huang also speculated that government-led funds might have contributed to the gains, particularly in TSMC, to bolster market confidence amid political uncertainties. TSMC, the most heavily weighted stock on the local market, saw a rise of 0.96 percent, closing at NT$1,050.00, after recovering from a low of NT$1,030.00. TSMC's performance contributed approximately 80 points to the Taiex's increase, elevating both the electronics index and semiconductor sub-index by 0.65 percent and 0.67 percent, respectively. "These government-led funds seemed intent on preventing TSMC from falling below NT$1,047, the 20-day moving average, to maintain its technical strength," Huang added. Other major semiconductors showed mixed results, with ASE Technology Holding Co. falling 1.64 percent to NT$150.00, and MediaTek Inc. declining 0.39 percent to NT$1,290.00. However, Alchip Technologies Inc. extended its upward momentum, buoyed by MediaTek's announcement of purchasing a stake through a private placement. In the AI sector, boosted by U.S.-based Nvidia Corp.'s positive performance, Quanta Computer Inc. rose 1.44 percent to NT$318.00, and Inventec Inc. surged 9.25 percent to NT$50.20. Meanwhile, iPhone assembler Hon Hai Precision Industry Co. remained unchanged at NT$214.00, and its affiliate Foxconn Technology Co. dropped 2.19 percent to NT$85.00. The transportation industry benefitted from optimism regarding freight rates, with Evergreen Marine Corp. gaining 3.33 percent to NT$217.50, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. rising 3.82 percent and 5.46 percent, respectively. Airline stocks showed mixed results, with China Airlines down 0.22 percent, while EVA Airways increased by 0.26 percent. In the electric machinery sector, which rose 2.14 percent, Fortune Electric Co. experienced a surge of 6.96 percent, and Shihlin Electric and Engineering Corp. gained 2.42 percent. In the old economy sector, Uni-President Enterprises Corp. rose 1.69 percent, while Wei Chuan Foods Corp. fell 0.56 percent. The financial sector saw a modest increase of 0.15 percent, with Cathy Financial Holding Co. rising 0.29 percent, while Fubon Financial Holding Co. remained unchanged. Despite the political uncertainties, Huang highlighted investors' optimism regarding a potential interest rate cut by the U.S. Federal Reserve later in the week, which could enhance market liquidity. According to TWSE, foreign institutional investors purchased a net NT$9.31 billion worth of shares on the main board on Tuesday.
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