Taipei: Shares in Taiwan closed at a fresh high on Wednesday, despite uncertainties arising from military conflicts in the Middle East, as strong buying in the electronics sector continued in response to robust global demand, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, climbed 273.36 points, or 0.73 percent, to close at 37,878.47, fluctuating between 37,623.38 and 38,096.88 throughout the day. The total turnover reached NT$946.03 billion (US$29.77 billion).
According to Focus Taiwan, despite mixed performances in U.S. markets overnight, Taiwan's main board maintained its upward trajectory, led predominantly by tech stocks. These stocks, particularly those that had lagged behind the Taiex for a while, saw renewed interest from investors. Taishin Securities analyst Tom Tang noted that "in a market awash in liquidity, investors appeared willing to chase tech stocks sitting on strong global demand for AI applications resilient to geopolitical unease."
While TSMC (Taiwan Semiconductor Manufacturing Co.), which makes up over 40 percent of the market's total value, remained unchanged at NT$2,050.00, buying interest shifted to other stocks that had previously lagged, further boosting the Taiex. Tang explained that TSMC's stagnation was a technical issue unrelated to its fundamentals.
In terms of specific performances, AI server manufacturer and iPhone assembler Hon Hai Precision Industry Co. surged 4.74 percent to NT$221.00. Meanwhile, smartphone IC designer MediaTek Inc. saw its shares soar by the maximum daily increase of 10 percent, closing at NT$2,295.00. Scientech Corp., an IC assembly equipment supplier for TSMC, also surged 10 percent to NT$847.00, while United Microelectronics Corp., a smaller contract chipmaker, gained 3.15 percent to NT$78.60. On the downside, memory chip supplier Nanya Technology Corp. fell 0.45 percent to NT$219.00.
Tang noted that local investors, who dominated trading activity, showed a preference for tech stocks over those from the old economy. Paper manufacturer Baolong International Co. dropped 2.05 percent to NT$11.95, and competitor YFY Inc. decreased by 1.96 percent to NT$25.00. Additionally, Fortune Electric Co. and Allis Electric Co. both fell by 0.44 percent, closing at NT$915.00 and NT$113.50, respectively.
In contrast, Evergreen Marine Corp., Taiwan's largest container cargo shipper, rose 0.25 percent to NT$202.00, while competitor Wan Hai Lines Inc. increased by 0.68 percent to NT$74.50. The financial sector recorded a modest rise of 0.07 percent, with Fubon Financial Holding Co. gaining 0.68 percent to NT$88.30, whereas Yuanta Financial Holding Co. fell 1.76 percent to NT$50.10.
Tang concluded that the Taiex might face technical resistance approaching 38,000 points. "If any technical pullback is possible, the nearest support could emerge as the index moves closer to 36,880 points, the 10-day moving average," he added. According to the TWSE, foreign institutional investors bought a net NT$11.61 billion of shares on the main board Wednesday.