Taipei: Shares in Taiwan reached new record closing levels on Thursday as tech stocks took center stage. Investors are showing increased interest in the potential of AI development, which overshadowed the U.S. Federal Reserve's recent hawkish tone following its policymaking meeting, according to dealers.
According to Focus Taiwan, the Taiex, Taiwan's benchmark index, climbed 587.81 points, or 1.28 percent, to close at 46,465.20. The market saw movement between 45,872.26 and 46,565.70, with a turnover of NT$1.54 trillion (US$48.51 billion). Tech stocks in Taiwan mirrored gains observed in the United States despite the Federal Reserve hinting at a possible rate hike by year's end to combat inflation. Cathay Futures Consultant analyst Tsai Ming-han noted that the ongoing AI boom is bolstering the electronics sector and, consequently, driving up the Taiex.
Taiwan Semiconductor Manufacturing Co. (TSMC), a major player accounting for over 40 percent of the market's total value, saw its shares rise by 1.05 percent to close at NT$2,410.00, contributing significantly to the index's increase. Tsai predicted continued buying in TSMC would further elevate the Taiex.
Other notable performers in the chip sector included United Microelectronics Corp., which rose 3.93 percent to end at NT$145.50, and ASE Technology Holding Co., which climbed 3.03 percent to close at NT$613.00. However, MediaTek Inc. saw a decline of 1.57 percent, ending at NT$4,390.00.
In other tech movements, Yageo Corp., a leading MLCC maker, reached the maximum daily increase of 10 percent to close at NT$1,080.00. Conversely, Hon Hai Precision Industry Co. experienced a 1.29 percent drop, ending at NT$268.50.
Tsai also highlighted active rotational buying, with the financial sector seeing a 1.36 percent rise. Fubon Financial Holding Co. and Cathay Financial Holding Co. posted gains, closing at NT$138.00 and NT$115.50, respectively. Some old economy stocks also saw gains, with Nan Ya Plastics Corp. and Formosa Plastics Corp. rising due to their involvement in AI gadget production.
Additionally, expectations of substantial government investment in electricity grid upgrades boosted Fortune Electric Co. by 3.74 percent to NT$833.00, and Shihlin Electric and Engineering Corp. by 2.11 percent to NT$241.50.
According to the Taiwan Stock Exchange, foreign institutional investors purchased a net NT$21.13 billion worth of shares on the main board on Thursday.