Taipei: Shares in Taiwan closed at a record high Monday, rising more than 300 points, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) hit a record high on the back of ample liquidity after a U.S. rate cut, dealers said. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 302.23 points, or 1.18 percent, at 25,880.60 after moving between 25,599.60 and 25,887.69. Turnover totaled NT$469.73 billion (US$15.52 billion).
According to Focus Taiwan, high liquidity levels continued to drive the day’s gains after the U.S. Federal Reserve cut interest rates last week, prompting foreign institutional investors to move more funds into the region. Moore Securities Investment Consulting Co.’s Adam Lin noted that TSMC once again served as an anchor of the local main board, benefiting from optimism over global artificial intelligence development.
As the most heavily weighted local stock, shares in TSMC rose 2.37 percent to close at the day’s high of NT$1,295.00, contributing about 240 points to the Taiex’s rise and sending the electronics index up 1.47 percent. Buying also spread to other large-cap semiconductor stocks, with IC packaging and testing firm ASE Technology Holding Co. up 1.47 percent to end at NT$172.50, and memory chip supplier Nanya Technology Corp. rising 2.02 percent to close at NT$80.80.
In contrast, smartphone IC designer MediaTek Inc. saw a decline, shedding 2.43 percent to end at NT$1,405.00. In the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. added 0.93 percent to close at NT$216.00, and power management solution provider Delta Electronics Inc. ended up 2.14 percent at NT$907.00.
Nontech stocks benefited from rising fund levels, particularly in “military concept stocks” following recent consolidation. Aircraft maintenance firm Air Asia Co. soared 10 percent to close at NT$61.30, and drone developer Thunder Tiger Corp. surged 9.64 percent to end at NT$153.50.
Elsewhere in the old economy sector, Asia Cement Corp. added 1.79 percent to close at NT$37.05, and rival TCC Group Holdings Co. gained 5.35 percent to end at NT$24.60. Nan Ya Plastics Corp. rose 3.31 percent to close at NT$40.55, while Taita Chemical Co. ended unchanged at NT$40.55.
In the financial sector, which underperformed the Taiex with a rise of only 0.26 percent, Fubon Financial Holding Co. rose 0.91 percent to close at NT$88.60, and Cathay Financial Holding Co. gained 0.76 percent to end at NT$66.00. Conversely, CTBC Financial Holding Co. fell 1.03 percent to close at NT$43.20.
Lin further commented that as the quarter comes to an end, business conglomerates are expected to buy stocks under their corporate umbrellas to improve their financial statements, providing additional support to the Taiex. However, technical hurdles are expected ahead of 26,000 points, indicating that minor pullbacks are possible.
According to the TWSE, foreign institutional investors sold a net NT$6.65 billion worth of shares on the main board Monday.