Taipei: Shares in Taiwan rebounded on Tuesday, reclaiming the 32,000-point level after a previous session decline, driven by renewed interest in the electronics sector, dealers reported. The Taiex, Taiwan Stock Exchange's benchmark index, rose by 571.33 points, or 1.81 percent, to close at 32,195.36, with trading volumes reaching NT$794.99 billion (US$25.17 billion).
According to Focus Taiwan, a significant factor in the market's rise was investor interest in Taiwan Semiconductor Manufacturing Co. (TSMC), following a 3.27 percent increase in its American depositary receipts overnight. Concord Securities analyst Kerry Huang noted that TSMC's stock rose 1.98 percent to NT$1,800.00, contributing approximately 280 points to the Taiex's surge. This interest was attributed to the ongoing AI boom, which has bolstered several AI-related electronics component stocks.
Other notable performances in the semiconductor sector included smartphone IC designer MediaTek Inc., which saw a 5.28 percent rise to NT$1,795.00. However, memory chip supplier Winbond Electronics Corp. faced a decline, shedding 9.05 percent to close at NT$205.50 due to concerns over China's production expansion.
Investment activity extended to other AI-linked stocks, with Delta Electronics Inc. rising 3.40 percent to NT$1,215.00. Gold Circuit Electronics Ltd. and Elite Material Co. also posted gains, closing at NT$755.00 and NT$1,855.00, respectively.
Old economy stocks tied to AI-related devices experienced upward movement as well. Taiwan Glass Industry Corp. and Fulltech Fiber Glass Corp. both soared 10 percent, reaching their maximum daily limit to close at NT$49.40 and NT$95.70. Other gains in the sector included Nan Ya Plastics Corp. and Formosa Plastics Corp., which rose 3.40 percent and 1.47 percent, respectively.
The financial sector also saw positive movement, with Fubon Financial Holding Co. rising 1.44 percent to NT$91.80 and Cathay Financial Holding Co. increasing by 0.54 percent to NT$74.70. Airline stocks such as China Airlines and EVA Airways both saw a 1.47 percent increase.
Huang highlighted that retail investors currently play a significant role in the market, suggesting potential volatility as they seek liquidity ahead of the Lunar New Year holiday. The TWSE reported that foreign institutional investors were net buyers with NT$7.27 billion in shares on the main board Tuesday.