Taipei: Shares in Taiwan reached an unprecedented high on Wednesday as Taiwan Semiconductor Manufacturing Co. (TSMC) concluded the day at a new peak, driven by optimism surrounding U.S. tech earnings, dealers noted. The Taiex, the Taiwan Stock Exchange’s benchmark index, surged by 485.90 points, or 1.50 percent, closing at the day’s peak of 32,803.82, with turnover reaching NT$830.99 billion (US$26.57 billion).
According to Focus Taiwan, the strong buying was fueled by positive sentiments about the U.S. earnings season amid the ongoing AI boom. Mega International Investment Services analyst Alex Huang highlighted the role of retail investors, who concentrated on acquiring TSMC shares, a key AI stock in Taiwan, in a market abundant with liquidity.
TSMC, representing over 40 percent of the market value, increased by 2.25 percent to close at NT$1,820.00, significantly influencing the Taiex’s rise by contributing approximately 320 points and boosting the electronics index by 1.81 percent. Memory chip makers also performed well, with Winbond Electronics Corp. soaring 10 percent to NT$127.00, and Nanya Technology Corp. climbing 7.22 percent to NT$297.00. Conversely, United Microelectronics Corp. saw a slight decline of 0.39 percent to NT$75.90.
In the tech sector, Delta Electronics Inc. saw a rise of 2.40 percent to NT$1,280.00, while Hon Hai Precision Industry Co. remained unchanged at NT$225.50. Dealers noted that petrochemical stocks gained from increased crude oil prices due to geopolitical tensions involving Iran, with Formosa Chemical and Fibre Corp. and Formosa Petrochemical Corp. seeing notable increases.
Electric machinery stocks also benefited from the government’s initiatives to enhance Taiwan’s electricity grid, with Shihlin Electric and Engineering Corp. and Fortune Electric Co. making notable gains. Conversely, Eclat Textile Corp. experienced a decline of 1.22 percent to NT$406.00, and Far Eastern New Century Corp. ended the day unchanged.
The financial sector saw only a marginal rise of 0.05 percent, with Fubon Financial Holding Co. inching up 0.11 percent to NT$92.50, while Cathay Financial Holding Co. saw a slight decrease. Despite recent gains, Huang suggests that the Taiex might face technical resistance as it approaches 33,000 points.
According to the TWSE, foreign institutional investors purchased a net NT$33.28 billion worth of shares on the main board on Wednesday.