Taipei:Shares in Taiwan experienced a significant rally with the Taiex, the Taiwan Stock Exchange's benchmark index, closing sharply higher by over 1,500 points. This surge was primarily driven by Taiwan Semiconductor Manufacturing Co. (TSMC), which saw its shares soar almost 5% following announcements of an increased quarterly cash dividend payout and robust October sales.
According to Focus Taiwan, the Taiex ended the day up 1,545.23 points, or 3.62%, reaching a high of 44,257.15. The day's turnover amounted to NT$849.17 billion (US$25.78 billion). Analyst Alex Huang from Mega International Investment Services noted that TSMC's performance significantly boosted the Taiex, as the increased dividend and strong sales figures led to a buying spree among investors.
TSMC's consolidated sales reached a new high in October, showing an increase of almost 60% compared to the previous year. The company's board also approved a record NT$9 cash dividend per share for the third quarter, up from NT$7 in the second quarter. TSMC closed at NT$2,395.00, contributing approximately 880 points to the Taiex's rise, with the electronics index climbing 3.98%.
The buying momentum extended to other semiconductor stocks, with ASIC designer AIchip Technologies Inc. rising 6.73% to NT$3,650.00, smartphone IC designer MediaTek Inc. increasing 4.18% to NT$3,990.00, and United Microelectronics Corp. gaining 3.48% to NT$104.00. In the broader tech sector, Asustek Computer Inc. and LITE-ON Technology Corp. also saw gains.
The financial sector also experienced strong buying interest, with the financial index up 2.46%. Notable increases included Fubon Financial Holding Co. up 4.25% to NT$159.50 and Cathay Financial Holding Co. rising 2.73% to NT$113.00. In the old economy sector, EVA Airways and China Airlines posted gains, alongside Nan Ya Plastics Corp. and Formosa Chemicals & Fibre Corp.
Since the announcement of market intervention by the National Financial Stabilization Fund, the Taiex has rebounded by about 4,555 points. However, Alex Huang warned of a potential pullback as the index approaches the 20-day moving average of 45,144 points. Meanwhile, foreign institutional investors sold a net NT$766.44 million of shares on the main board Wednesday, as reported by the Taiwan Stock Exchange.