Taipei: Shares in Taiwan closed with marginal changes as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a decline in its earlier gains due to futures-led selling on the settlement day for December futures contracts.
According to Focus Taiwan, the Taiex, the Taiwan Stock Exchange’s benchmark index, concluded with a slight drop of 11.49 points, or 0.04 percent, at 27,525.17. The index fluctuated between a low of 27,496.60 and a high of 27,780.69, with a total turnover reaching NT$507.08 billion (US$16.05 billion). Mega International Investment Services analyst Alex Huang noted that foreign institutional investors holding a significant number of short-position contracts contributed to the Taiex losing its earlier gains.
Trimming TSMC shares, which hold substantial weight in the local market, was identified as an effective method to influence the spot market and realize profits in futures. TSMC saw a decline of 0.35 percent, closing at NT$1,403.00, down from a high of NT$1,445.00 earlier in the day. This downturn in TSMC shares contributed to the index losing about 120 points.
The Taiwan Stock Exchange (TWSE) reported that foreign institutional investors added 4,000 short-position futures contracts to approximately 34,000 on Tuesday and sold a net NT$32.45 billion worth of shares on the main board on Wednesday. Profit taking was also observed in other semiconductor stocks, with MediaTek Inc. experiencing a slight increase, while memory chip suppliers like Nanya Technology Corp. and Winbond Electronics Corp. saw significant gains due to a global supply shortage.
In the broader tech sector, companies such as AI server maker and iPhone assembler Hon Hai Precision Industry Co. and Quanta Computer Inc. also faced declines. However, financial stocks showed resilience, buoyed by expectations of potential deregulation measures from the White House. Key financial stocks like CTBC Financial Holding Co., Cathay Financial Holding Co., and Fubon Financial Holding Co. posted gains.
Old economy stocks presented a mixed picture, with Formosa Petrochemical Corp. and Nan Ya Plastics Corp. suffering losses due to falling crude oil prices, while airlines like China Airlines and EVA Airways benefited from reduced fuel costs.
Despite the fluctuations, analyst Huang suggested that the Taiex could face technical resistance near the 28,000-point mark if a rebound occurs.