Taipei: Shares in Taiwan closed higher on Wednesday, yet gains were tempered as the market faced significant technical pressure just shy of the 28,000-point benchmark. The Taiwan Semiconductor Manufacturing Co. (TSMC), a major player in the index, failed to maintain its initial momentum, impacting the overall market performance.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange’s weighted index, increased by 162.14 points, or 0.58 percent, concluding the session at 27,947.09. The index fluctuated between 27,799.92 and 28,071.76, with a total turnover of NT$560.51 billion (US$18.08 billion). Analysts, including Alex Huang from Mega International Investment Services, noted that this marked the fourth consecutive session where the index could not surpass the 28,000-point level, indicating the need for consolidation to manage recent pressures.
The market saw an upward trend by noon, led by TSMC following the company’s announcement of a cash dividend increase to NT$6 per share for its third quarter ear
nings. This was a rise from NT$5 in the previous quarter. However, profit-taking activities soon followed, diminishing the gains of both TSMC and the Taiex amid ongoing concerns over tech stock valuations.
TSMC, which constitutes over 40 percent of Taiex’s market value, saw a rise of 0.68 percent, closing at NT$1,475.00, though it slipped from a high of NT$1,485.00 earlier in the day, impacting the Taiex by about 80 points. The performance of other semiconductor stocks was mixed, with MediaTek Inc. rising by 0.40 percent and ASE Technology Holding Co. falling by 0.44 percent.
Notably, Transcend Information, Inc. surged by the maximum daily increase of 10 percent, closing at NT$196.50 due to a supply shortage. AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose by 1.83 percent, while Quanta Computer Inc. saw a decline of 1.20 percent.
In the non-tech sector, petrochemical stocks provided additional market support, driven by Nan Ya Plastics Corp.’s profitable third quarter. Nan Ya Plasti
cs saw a 10 percent increase, with related companies under the Formosa Plastics Group also experiencing gains. Despite these improvements, Huang cautioned that Nan Ya’s profits were largely due to non-core business investments, with the global petrochemical market still weak.
In the financial sector, Fubon Financial Holding Co. rose by 0.77 percent, and Cathay Financial Holding Co. ended with a 0.15 percent increase. Despite the positive close of the Taiex, foreign institutional investors remained net sellers, offloading NT$8.48 billion in shares on the exchange, as reported by the TWSE.