Taipei: Shares in Taiwan closed lower Monday but recovered from early losses to remain above the 24,000-point mark, as late-session bargain hunting in Taiwan Semiconductor Manufacturing Co. (TSMC) supported the broader market, dealers said. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended down 161.37 points, or 0.67 percent, at 24,071.73, after fluctuating between 23,885.41 and 24,312.83. Turnover reached NT$509.08 billion (US$16.63 billion).
According to Focus Taiwan, the local main board initially dropped below 24,000 points, losing nearly 350 points at the day's low. This decline came as investors reacted to the latest U.S. losses by taking profits. Analyst Adam Lin from Moore Securities Investment Consulting noted that the declines on the S and P 500 and Nasdaq on Friday, following recent inflation data, influenced investor behavior in Taiwan.
Bargain hunters sought TSMC shares in the late session, helping the stock rise by 0.43 percent to NT$1,165. This late buying activity enabled the Taiex to recover approximately 40 points. TSMC's performance served as a stabilizing factor for both the semiconductor index and the overall Taiex.
Other semiconductor stocks saw mixed results. ASE Technology Holding Co. increased by 3.31 percent to NT$156.00, while Global Unichip Corp., an ASIC design subsidiary of TSMC, gained 0.38 percent to NT$1,335.00. MediaTek Inc. experienced a loss of 0.73 percent, closing at NT$1,360.00 but rebounding from an intraday low of NT$1,350.00.
In contrast, AI hardware developers faced heavier selling. Quanta Computer Inc., an AI server maker, fell by 2.48 percent to NT$256.00, and Delta Electronics Inc., a power management solution supplier, declined by 3.23 percent to NT$688.00.
HTC Corp. defied the downturn, climbing 3.55 percent to NT$72.90, spurred by strong preorders for its new Vive Eagle AI glasses, which went on sale Monday. Financial stocks outperformed the broader market, with the sector index rising 0.94 percent. Cathay Financial Holding Co. gained 0.72 percent to NT$84.50, while Mega Financial Holding Co. increased by 1.87 percent to NT$40.80.
The old economy sector largely weakened, with Shihlin Electric and Engineering Corp. dropping 4.74 percent to NT$191.00, and Fortune Electric Co. falling 4.02 percent to NT$621.00. Recent gains in "military concept" stocks led to profit-taking, with Aerospace Industrial Development Corp. down 4.49 percent at NT$59.60 and drone maker Thunder Tiger Corp. down 6.18 percent at NT$159.50.
Adam Lin suggested that before a U.S. tariff on semiconductors is finalized, the Taiex might continue to consolidate. According to TWSE, foreign institutional investors sold a net NT$7.83 billion worth of shares on the main board on Monday.