Taipei: Shares in Taiwan soared to new heights, surpassing the 32,000-point milestone on Monday, driven by a shift in investment towards the old economy sector. The Taiex, Taiwan Stock Exchange's benchmark index, closed up by 103.01 points, or 0.32 percent, at 32,064.52. The index traded between 31,989.86 and 32,196.75 throughout the session, with a total turnover of NT$724.61 billion (US$23.08 billion).
According to Focus Taiwan, the Taiex's momentum carried forward from recent substantial gains, with the index having climbed 2,997.91 points, or 10.35 percent, since the start of the year. Cathay Futures Consultant analyst Tsai Ming-han noted that raw material suppliers drew interest from bargain hunters after being overshadowed by tech stocks. The petrochemical sector experienced significant gains, with Formosa Plastics Corp. and Formosa Chemicals and Fibre Corp. each surging 10 percent to close at NT$48.80 and NT$38.95, respectively. Nan Ya Plastics Corp. also saw a rise, ending up 5.97 percent at NT$81.70.
The textile sector recorded an increase of 2.48 percent, with Far Eastern New Century Corp. climbing 3.38 percent to NT$29.05, and Sinkong Synthetic Fibers Corp. advancing 3.99 percent to NT$15.65. In the paper sector, which rose by 2.19 percent, Shihlin Paper Corp. gained 4.36 percent to close at NT$59.80, while YFY Inc. ended 2.01 percent higher at NT$25.40.
In the electronics sector, rotational buying remained robust despite a minor correction in Taiwan Semiconductor Manufacturing Co. (TSMC), which slipped by 0.85 percent to NT$1,755.00. Meanwhile, MediaTek Inc. surged 8.59 percent to NT$1,770.00, buoyed by optimism around its development of application-specific integrated circuits (ASIC).
Memory chip suppliers like Winbond Electronics Corp. and Macronix International Co. continued their upward trajectory, rising 10 percent each to close at NT$113.00 and NT$76.20, respectively. Additionally, AI server maker and iPhone assembler Hon Hai Precision Industry Co. saw a 1.13 percent increase, ending at NT$224.00.
The financial sector rose by 0.76 percent. E. Sun Financial Holding Co. increased by 1.20 percent to NT$33.65, and Cathay Financial Holding Co. ended 0.65 percent higher at NT$77.10, whereas Fubon Financial Holding Co. decreased by 0.32 percent to NT$93.20.
Tsai cautioned that while the Taiex could continue its upward trend, investors should stay vigilant regarding the upcoming U.S. Federal Reserve meeting and the start of the U.S. tech earnings season later in the week. Despite the overall gains, foreign institutional investors sold a net NT$1.49 billion worth of shares on the main board on Monday.