Taipei: Shares in Taiwan ended higher on Monday, although gains were tempered by significant losses from Taiwan Semiconductor Manufacturing Co. (TSMC). The downturn for the major contract chipmaker followed a Wall Street Journal report suggesting Apple Inc. might transfer its orders to Intel Corp., dealers noted.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange’s benchmark index, rose by 186.12 points, or 0.45 percent, concluding at 41,790.06 after peaking at 42,021.78. Total turnover reached NT$1.11 trillion (US$35.19 billion). Moore Securities Investment Consulting analyst Adam Lin highlighted that U.S. tech stocks continued their ascent, which positively influenced local electronics stocks amid ongoing optimism about AI development. However, TSMC faced pressure due to the Intel report, leading to intensified selling late in the session, which prevented the Taiex from maintaining its gains above 42,000 points.
TSMC, which contributes to over 40 percent of the market’s total value, saw its shares fall 2.40 percent, closing at NT$2,235.00. The losses incurred by TSMC cost the Taiex approximately 440 points. Mega International Investment Services analyst Alex Huang mentioned that TSMC’s leadership in high-end technology development remains unchallenged for now, suggesting that investors were seizing the opportunity to secure profits amid the recent market volatility.
Despite setbacks for TSMC, other electronics stocks saw a shift in buying interest, which helped stabilize the Taiex. Notably, smartphone IC designer MediaTek Inc. experienced a 6.89 percent rise, closing at NT$3,880.00. Memory chip suppliers Nanya Technology Corp. and Winbond Electronics Corp. both reached the maximum daily increase of 10 percent, ending at NT$301.10 and NT$117.50, respectively. PC brands also benefited, with Asustek Computer Inc. and Acer Inc. rising by 5.54 percent and 3.60 percent, closing at NT$686.00 and NT$28.80.
Lin further noted that selected old economy stocks with AI development ties attracted buying interest. Among them, Nan Ya Plastics Corp. increased by 3.27 percent, closing at NT$91.50, and Formosa Plastics Corp., linked to Nan Ya Plastics through cross shareholding, saw a gain of 1.44 percent to end at NT$44.25. Additionally, Hiwin Technologies Corp. and its subsidiary Hiwin Mikrosystem Corp., both involved in robotics development, surged 10 percent, closing at NT$351.00 and NT$250.50, respectively.
The financial sector, however, experienced a decline of 0.72 percent. Cathay Financial Holding Co. fell by 2.00 percent, closing at NT$78.40, while Fubon Financial Holding Co. decreased by 1.24 percent, also ending at NT$78.40. Lin advised investors to monitor the upcoming U.S.-China summit, as any political developments from the meeting could impact financial markets. The meeting between U.S. President Donald Trump and Chinese leader Xi Jinping is set for Thursday.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$10.98 billion of shares on the main board Monday.