Taipei: Shares in Taiwan experienced a significant surge as the Taiex index marked the largest single-session gain in its history. This increase was primarily driven by a robust rebound in the electronics sector, particularly semiconductors, influenced by rallies in the United States and South Korea.
According to Focus Taiwan, the Taiex, which serves as the benchmark index of the Taiwan Stock Exchange, soared by 1,783.17 points, or 4.20 percent, reaching a new high of 44,232.87. This surpassed the previous record of a 1,778.51 point gain set on May 4. The total turnover for the day amounted to NT$835.62 billion (US$25.85 billion).
Hua Nan Securities analyst Kevin Su noted that the recovery of semiconductor stocks in the U.S. market, demonstrated by a 0.60 percent rise in the Philadelphia Semiconductor Index on Monday, spurred local bargain hunters to act. Additionally, the stabilization of the Seoul market, following a recent tech stock sell-off, provided further support to the Taiex.
In South Korea, the Kospi index also saw a significant increase of over 4 percent, led by major companies such as SK Hynix Inc. and Samsung Electronics Corp. In Taiwan, large-cap semiconductor stocks mirrored this trend, with the electronics index and semiconductor sub-index increasing by 4.81 percent and 4.50 percent, respectively.
Taiwan Semiconductor Manufacturing Co. (TSMC), a major player in the market, saw its stock rise by 3.88 percent to NT$2,410.00, contributing approximately 720 points to the Taiex's gain. Other semiconductor stocks such as MediaTek Inc. and ASE Technology Holding Co. also saw notable increases.
Beyond the semiconductor industry, companies like Hon Hai Precision Industry Co. and Yageo Corp. experienced gains. Additionally, non-tech stocks, particularly those related to the military sector, attracted interest from bargain hunters. Air Asia Co. and Aerospace Industrial Development Corp. both saw their stocks surge by 10 percent.
In the broader market, Nanya Plastics Corp. and Formosa Plastics Corp. also posted gains, while in the financial sector, Cathay Financial Holding Co. saw a slight increase, and Fubon Financial Holding Co. remained steady. Despite the Taiex's overall strong performance, foreign institutional investors continued to sell, with net sales of NT$4.33 billion in shares reported on Tuesday.