Taipei:Shares in Taiwan closed at a record high on Tuesday, although the benchmark index remained below the 50,000-point mark as investors showed caution approaching this significant level.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange's benchmark index, increased by 110.51 points, or 0.22 percent, to reach 49,822.55, with trading ranging from 49,479.69 to 49,968.92. The total turnover amounted to NT$975.94 billion (US$30.70 billion).
Concord Securities analyst Kerry Huang noted that as the index neared the 50,000-point threshold, some investors opted to secure profits, although Taiwan Semiconductor Manufacturing Co. (TSMC) remained resilient and contributed to breaking the previous closing record. TSMC's shares, which rose 0.39 percent to close at NT$2,585.00, accounted for over 40 percent of the market's total value and contributed about 80 points to the Taiex's rise.
Huang also highlighted investor interest in TSMC, driven by expectations of positive guidance on its business outlook and overseas expansion, particularly with an investor conference scheduled for October 15 amid the ongoing AI boom.
Among other semiconductor stocks, ASE Technology Holding Co. saw a 0.27 percent increase, while MediaTek Inc. dropped 4.74 percent. In the broader technology sector, Hon Hai Precision Industry Co. rose 0.79 percent, and Delta Electronics Inc. increased by 2.24 percent.
Investors shifted focus from large-cap tech stocks to select old-economy industries, particularly within the Formosa Plastics Group. Formosa Petrochemical Corp., Nan Ya Plastics Corp., and Formosa Chemicals and Fibre Corp. all saw gains.
Textile stocks also attracted interest due to low valuations, with Eclat Textile Co. and Makalot Industrial Co. both recording increases. In the financial sector, Fubon Financial Holding Co. and Cathay Financial Holding Co. also saw gains.
Huang expressed concern about rising U.S. Treasury yields, which could impact tech firms by increasing fundraising costs, potentially affecting their operations and share prices. Foreign institutional investors sold a net NT$6.66 billion worth of shares on the main board on Tuesday.