Taipei--Shares in Taiwan continued to steam ahead Monday to close above the 10,200-point level, led by the bellwether electronics sector, dealers said.
Taiwan Semiconductor Manufacturing Co. (TSMC, ???), said to be supplying the A11 processor for the next generation iPhones, pushed the high-tech sector higher, and buying spread to other "Apple concept" stocks, helping the broader market maintain its strength, they said.
The weighted index on the Taiwan Stock Exchange closed up 68.69 points, or 0.68 percent, at the day's high of 10,226.84, off an early low of 10,164.89, on turnover of NT$92.29 billion (US$3.07 billion).
The market opened up 6.74 points, and buying momentum soon accelerated, as foreign institutional investors snapped up large cap stocks after the Dow Jones Industrial Average, the S&P 500 index and the tech-heavy Nasdaq all hit record highs on Friday, dealers said.
Buying was most evident late in the trading session, helping the index close at the day's high.
TSMC, the most heavily weighted stock in the local market, was the main driver of the rally, closing at a record high on a report that it will return to the memory chip market to compete with Samsung Electronics Co. of South Korea, they said.
"TSMC dominated the stock market again. The report on memory chip development pleased many investors already sold on the company's sound fundamentals," Xincheng International Investment Consultant analyst Chang Chih-cheng said.
"I think the buying came largely from foreign institutional investors after returning from their holiday," Chang said.
Taiwan's stock exchange opened on Saturday to make up a lost trading session during the four-day Dragon Boat Festival holiday in late May, but trading was lackluster and closed up only 0.06 percent due to the absence of many foreign institutional investors.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$3.9 billion in shares on Monday, compared with NT$64.46 million on Saturday.
The bellwether electronics sector closed up 0.93 percent and the semiconductor sub-index ended up 1.31 percent, after TSMC, the world's largest contract chip maker, gained 1.44 percent to close at NT$212.00.
Among other suppliers to Apple, metal casing maker Catcher Technology Co. (??) rose 3.35 percent to close at NT$339.00, and integrated circuit packaging and testing firm Advanced Semiconductor Engineering Inc. (???) added 1.81 percent to end at NT$39.30.
Hon Hai, an assembler of iPhones and iPads for Apple, rose 0.48 percent to close at NT$105.50 after Terry Gou (???), chairman of the company, said in an interview with the Nikkei Asian Review that Hon Hai will be joined by Apple and Amazon in a bid for the memory chip assets of Toshiba Corp.
Also in the high-tech sector, IC designer MediaTek Inc. (???) rose 3.18 percent to end at NT$243.00 as active bargain hunters took advantage of what they felt was the stock's relatively low valuation.
Bucking the upturn on the broader market, Largan Precision Co. (???), a smartphone camera lens supplier to Apple, fell 0.10 percent to close at NT$4,850.00.
In the old economy sector, Formosa Chemicals & Fibre Corp. (??) rose 1.76 percent to end at NT$92.30, and Hotai Motor Corp. (???) gained 1.43 percent to close at NT$390.00.
"After today's gains, the local stock market has become technically healthier," Chang said.
"As long as foreign institutional investors continue to stand on the buy side, the index could challenge the nearest technical resistance at around 10,300 points soon," he added.
Source: Focus Taiwan News Channel