Taipei: Shares in Taiwan continued their upward momentum, closing higher as buying activity was spurred by a rally in the United States overnight, dealers reported. The Taiex, Taiwan Stock Exchange’s benchmark index, rose 61.51 points, or 0.22 percent, to finish at 28,371.98. The turnover amounted to NT$429.04 billion (US$13.66 billion).
According to Focus Taiwan, the U.S. reported a better-than-expected GDP growth of 4.3 percent for the third quarter, which prompted investors to buy amid improved market sentiment. This led to an historic closing high on the S and P 500. Hua Nan Securities analyst Kevin Su noted that local investors followed the U.S. trend, picking up select large-cap stocks, particularly Taiwan Semiconductor Manufacturing Co. (TSMC), to bolster the Taiex. However, light turnover limited the extent of the upturn.
TSMC, the most heavily weighted local stock, saw a rise of 0.34 percent, closing at NT$1,495.00. This gain contributed approximately 40 points to the Taiex’s overall increase. Su also highlighted that shares in Delta Electronics Inc., another significant large-cap stock, climbed 1.27 percent to end at NT$955.00, providing additional support to the index.
With many foreign institutional investors away for the holidays, smaller stocks became active, particularly those related to memory chips and printed circuit boards (PCB). Due to a global shortage of memory chips, Nanya Technology Corp. surged 7.08 percent to close at NT$189.00, while Winbond Electronics Corp. advanced 5.34 percent to end at NT$76.90. Elite Material Co., a supplier of PCB production materials, increased 4.64 percent to close at NT$1,690.00, and PCB maker Gold Circuit Electronics Ltd. added 2.61 percent to finish at NT$668.00.
The electronics sector accounted for about 70 percent of total turnover, whereas nontech stocks largely remained lackluster. Formosa Plastics Corp. decreased 0.87 percent to close at NT$39.75, and Nan Ya Plastics Corp. dropped 1.19 percent to end at NT$58.10. Eclat Textile Co. fell 0.39 percent to close at NT$386.00, and competitor Far Eastern New Century Corp. declined 1.42 percent to close at NT$27.80.
The financial index fell by 0.52 percent, with Cathay Financial Holding Co. dropping 1.04 percent to close at NT$75.90, and Fubon Financial Holding Co. slightly down by 0.10 percent at NT$98.00. Su suggested that if U.S. markets continue to gain, the Taiex could soon challenge the intraday high of 28,568 points recorded on December 11.
According to TWSE, foreign institutional investors sold a net NT$3.80 billion worth of shares on the main board Wednesday.
