Taipei: Shares in Taiwan ended higher but retreated from their peak on Wednesday, as some investors shifted to selling due to concerns over potential volatility in U.S. markets following the U.S. government shutdown, dealers reported.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), rose by 162.37 points, or 0.63 percent, closing at 25,982.91 after reaching a high of 26,325.79. The total turnover was NT$455.71 billion (US$14.96 billion).
“The initial strong showing today came largely as contract chipmaker TSMC (Taiwan Semiconductor Manufacturing Co.) moved sharply higher with buying sparked by the gains posted by chip designer Nvidia Corp. overnight,” explained MasterLink Securities analyst Tom Tang. “However, part of the early upturn was eroded due to losses among U.S. futures prompting investors to fear U.S. spot market volatility on a government shutdown,” Tang added.
TSMC, the most heavily weighted local stock, increased by 1.53 percent to close at NT$1,325.00, although it retreated from a high of NT$1,350.00. The electronics index also pulled back from a high of 1,554.60 to end at 1,518.26, up 0.89 percent. Other semiconductor stocks showed mixed results; memory chip supplier Nanya Technology Corp. rose 4.38 percent to NT$76.20, while smartphone IC designer MediaTek Inc. fell 2.28 percent to NT$1,285.00. IC packaging and testing services provider ASE Technology Holding Co. dropped 0.61 percent to NT$163.00.
In the broader tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co., ranked second to TSMC in market value, increased by 1.39 percent to NT$219.00. However, Quanta Computer Inc., another AI server supplier, decreased by 1.21 percent to NT$286.50.
Tang noted that the electronics sector attracted significant market attention, while non-tech stocks mostly stagnated, except for some aided by their tech partnerships. Teco Electric and Machinery Co. surged 10 percent, the maximum daily increase, closing at NT$104.50 due to its partnership with Hon Hai to enhance AI infrastructure capabilities. Taiwan Glass Industry Corp. gained 2.01 percent to NT$27.95 following reports that its glass fiber is used in AI-related devices.
Conversely, Asia Cement Corp. dropped 0.83 percent to NT$323.80, and TCC Group Holdings Co. fell 2.10 percent to NT$37.35. Formosa Chemicals and Fiber Corp. decreased by 1.85 percent to NT$29.20, and Formosa Plastics Corp. fell 0.78 percent to NT$27.95.
The financial sector saw a decline of 0.17 percent, with Fubon Financial Holding Co. dropping 1.02 percent to NT$87.40, and Cathay Financial Holding Co. ending down 0.46 percent at NT$65.30.
Tang mentioned that with the U.S. Federal Reserve initiating a rate cut cycle, foreign institutional investors are expected to move more funds into the region to support the Taiex. According to the TWSE, foreign institutional investors purchased a net NT$12.66 billion worth of shares on the main board Wednesday.
