Taipei: Shares in Taiwan reached a record high as Taiwan Semiconductor Manufacturing Co. (TSMC) continued its upward trajectory, driven by optimism concerning global demand for AI applications. The Taiex, the Taiwan Stock Exchange's benchmark index, increased by 139.93 points, or 0.46 percent, closing at 30,707.22 with a trading range between 30,529.33 and 30,973.85. The total turnover was NT$723.43 billion (US$22.85 billion).
According to Focus Taiwan, Tony Huang, an analyst with Taishin Securities Investment Advisory, stated that "the local main board remained dictated by TSMC." Investors are eagerly anticipating TSMC's investor conference, scheduled for Thursday, to gain insights during the burgeoning AI era. TSMC, which accounts for over 40 percent of the market value, saw its shares increase by 1.18 percent to close at NT$1,710.00, boosting the electronics and semiconductor indexes.
The New York Times reported Monday about TSMC's plans to build more semiconductor facilities in Arizona, sparking strong interest among the company's suppliers. United Integrated Services Co., a cleanroom builder, soared 10 percent to end at NT$1,080.00, and Marketech International Corp., a technology integration support services provider, rose 7.34 percent to close at NT$292.50.
In other semiconductor news, MediaTek Inc., a smartphone IC designer, rose 2.77 percent to NT$1,485.00, while Nanya Technology Corp., a memory chip supplier, saw a 3.37 percent decline to NT$230.00. Hon Hai Precision Industry Co., an AI server maker and iPhone assembler, fell 0.88 percent to NT$226.50.
In the old economy sector, Formosa Plastics Corp. and Nan Ya Plastics Corp. experienced losses, with Formosa shedding 3.13 percent to NT$40.20 and Nan Ya falling 3.86 percent to NT$62.20. Conversely, Uni-President Enterprises Corp. rose 0.66 percent to NT$76.10, while Wei Chuan Foods Corp. dropped 0.35 percent to NT$14.35.
The financial index saw a slight increase of 0.02 percent. Cathay Financial Holding Co. added 0.71 percent to close at NT$77.40, but Fubon Financial Holding Co. ended 0.84 percent lower at NT$94.20. Huang noted that despite the gains, Taiex retreated from its day's high as it approached the 31,000-point psychological level, but he expects the market to challenge this level amid active rotational buying. Financial stocks present good buying opportunities due to their low valuations.
According to the TWSE, foreign institutional investors purchased a net NT$15.74 billion worth of shares on the main board Tuesday.