Taipei: Shares in Taiwan closed significantly higher, continuing the upward trend from the previous session, as Taiwan Semiconductor Manufacturing Co. (TSMC) finished at the day's peak following robust gains in its American depositary receipts (ADRs) overnight.
According to Focus Taiwan, the Taiex, the benchmark index of the Taiwan Stock Exchange, climbed by 893.08 points, or 1.94 percent, to close at 47,018.99 after fluctuating between 46,234.70 and 47,293.10. The total turnover reached NT$1.302 trillion (US$40.85 billion). The surge was primarily driven by the tech sector, with significant buying interest in TSMC. This followed a 3.21 percent rise in the Philadelphia Semiconductor Index, highlighting global optimism about AI technologies.
TSMC, which constitutes over 40 percent of the total market value, saw its shares rise 3.94 percent to close at NT$2,505.00, contributing approximately 760 points to the Taiex's increase and boosting the electronics index by 2.44 percent. The stock's performance was buoyed by expectations of positive developments from TSMC's upcoming investor conference slated for July 16.
The rally extended to other major semiconductor firms. ASE Technology Holding Co., an IC packaging and testing company, increased by 3.38 percent, closing at NT$703.00, while MediaTek Inc., a smartphone IC designer, rose 2.12 percent to NT$4,335.00. In contrast, memory chip supplier Nanya Technology Corp. fell 6.96 percent to NT$421.00.
In the broader tech sector, Hon Hai Precision Industry Co., an iPhone assembler and AI server maker, decreased by 1.20 percent to NT$248.00, whereas Delta Electronics Inc., a power management solution provider, rose 2.05 percent to NT$1,990.00.
Despite the tech-driven rally, large-cap financial stocks did not follow the upward trend, as selling intensified in the afternoon. Cathay Financial Holding Co. saw a decline of 3.36 percent to NT$95.00, and Fubon Financial Holding Co. dropped 2.39 percent to NT$122.50. In the old economy sector, Eclat Textile Co. fell 0.32 percent to NT$311.50, and Far Eastern New Century Corp. decreased by 0.70 percent to NT$28.30. Formosa Plastics Corp. experienced a slight drop of 0.37 percent, closing at NT$54.30, whereas Nan Ya Plastics Corp. achieved the maximum daily gain of 10 percent, ending at NT$183.00, due to its efforts in producing chemical materials for AI gadgets.
Tsai Ming-han, an analyst at Cathay Futures Consultant, noted that July is traditionally favorable for the Taiex and suggested that the index might continue to rise on TSMC's momentum ahead of the investor conference. However, a significant pullback could occur in August or September.
Foreign institutional investors were net buyers of NT$32.38 billion worth of shares on the main board on Wednesday, as reported by the Taiwan Stock Exchange.