Taipei: Shares in Taiwan closed moderately higher Monday, led by the electronics sector, as investors were influenced by a rally in U.S. tech stocks at the end of last week.
According to Focus Taiwan, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) hit a historical high due to optimism about securing an exemption from U.S. tariffs on semiconductors. However, its gains were partly eroded by the end of the session. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), rose by 114.24 points, or 0.48 percent, closing at 24,135.50 with a turnover of NT$426.22 billion (US$14.25 billion).
“The gains posted by U.S. tech stocks continued to dictate the local main board,” said Alex Huang, an analyst with Mega International Investment Services, referencing a 0.98 percent increase on the Nasdaq index and a 0.79 percent rise on the Philadelphia Semiconductor Index on Friday. TSMC, the most heavily weighted local stock, increased by 0.45 percent to close at NT$1,180.00, after reaching an intraday high of NT$1,195.00.
Huang noted that the buying in TSMC was driven by positive sentiment around a potential U.S. tariff exemption, largely due to the company’s investments in Arizona. This shift in focus towards TSMC’s fundamentals was seen as a factor easing tariff-related interruptions.
In the semiconductor sector, MediaTek Inc. rose 0.37 percent to NT$1,355.00, while Nanya Technology Corp. dropped 0.34 percent to NT$43.80. iPhone assembler Hon Hai Precision Industry Co. also saw gains, ending up 1.80 percent at NT$198.00, reflecting Apple Inc.’s tariff exclusion benefits.
Hon Hai’s performance positively impacted its subsidiaries, with Zhen Ding Technology Holding Ltd. and Foxconn Technology Co. both surging 10 percent, the maximum daily increase, closing at NT$141.50 and NT$76.30, respectively.
Huang mentioned that while tech stocks were the primary focus, some petrochemical stocks showed resilience. Nan Ya Plastics Corp. rose 8.29 percent, and other companies like Formosa Chemicals and Fibre Corp., Formosa Plastics Corp., and Formosa Petrochemical Corp. also saw gains.
Conversely, some sectors faced declines, with Far Eastern New Century Corp. dropping 3.65 percent and Eclat Textile Co. falling 1.97 percent. In the food sector, Uni-President Enterprises Corp. decreased by 0.51 percent, whereas Charoen Pokphand Enterprise (Taiwan) Co. gained 1.69 percent.
In the financial sector, which rose 0.37 percent, Fubon Financial Holding Co. and Cathay Financial Holding Co. added 1.17 percent and 1.11 percent, respectively. The TWSE reported that foreign institutional investors sold a net NT$3.99 billion worth of shares on the main board Monday.