Taipei: Shares in Taiwan surged more than 700 points to reach their second-highest closing level in history, fueled by a robust demand for large-cap semiconductor stocks following a notable rally by their U.S. counterparts late last week.
According to Focus Taiwan, the Taiex, which serves as the benchmark index for the Taiwan Stock Exchange, climbed 775.14 points, or 1.67 percent, to finish at 47,326.27. This impressive performance trails only its record close of 47,741.51 achieved on June 22. The day's turnover amounted to NT$939.93 billion, equivalent to US$29.71 billion.
Concord Securities analyst Kerry Huang noted that despite concerns over a potential rate hike by the Federal Reserve due to U.S. jobs data for August, investors in Taiwan were eager to acquire semiconductor stocks, buoyed by the ongoing AI boom and a 3.38 percent rise in the Philadelphia Semiconductor Index. TSMC spearheaded the semiconductor sector's surge, with its American depositary receipts having risen 2.06 percent on Friday. TSMC's shares increased 2.07 percent, closing at NT$2,460.00, and contributed roughly 400 points to the Taiex's gain.
Other semiconductor companies also experienced significant gains. United Microelectronics Corp. saw its stock soar 10 percent to NT$143.00, driven by a 30.71 percent year-on-year increase in August sales. MediaTek Inc., a leading smartphone IC designer, rose 7.81 percent to NT$4,760.00, bolstered by advancements in its ASIC development. Meanwhile, South Korean memory chip producers Samsung Electronics Co. and SK Hynix Inc. saw their stocks surge, while Taiwan's Nanya Technology Corp. increased 4.23 percent to NT$517.00.
In the broader technology sector, Delta Electronics Inc., a power management solutions provider, gained 1.37 percent to close at NT$1,850.00. However, Largan Precision Co., a smartphone camera lens supplier, suffered a 10 percent decline, closing at NT$6,660.00, following a "sell" recommendation from a European brokerage.
Huang pointed out that nontechnology stocks underperformed as the spotlight remained on the electronics sector. Eclat Textile Co. and Makalot Industrial Co. experienced declines, while in the automotive sector, Yulon Motor Co. lost 0.96 percent, and Hotai Motor Co. ended unchanged.
Select petrochemical stocks defied the broader downturn, fueled by optimism regarding their role in developing raw materials used in technology products. Nan Ya Plastics Corp. and Formosa Chemicals and Fibre Corp. recorded gains of 2.22 percent and 3.01 percent, respectively.
Despite overall market gains, the financial sector saw a decline of 0.23 percent, with Fubon Financial Holding Co. and Cathay Financial Holding Co. both experiencing losses. Huang advised investors to keep a close eye on upcoming inflation data for insights into the Federal Reserve's future actions.
The Taiwan Stock Exchange reported that foreign institutional investors purchased a net NT$88.31 billion worth of shares on the main board on Monday.