Taipei: Shares in Taiwan closed slightly higher Friday amid hopes that the U.S. Federal Reserve will cut key interest rates in December, an analyst said. The Taiex, the Taiwan Stock Exchange's (TWSE) weighted index, ended up 71.95 points, or 0.26 percent, at 27,626.48 on Friday after moving between 27,566.12 and 27,796.90. Turnover totaled NT$471.58 billion (US$15.04 billion).
According to Focus Taiwan, the market saw buying sentiment carried over from Thursday, when the Taiex rose 0.53 percent, and that momentum steadily boosted the index until it hit its high for the day at around 1 p.m. Some investors then shifted to the sell side in the final half hour of the trading session, forcing contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) to give up most of its earlier gains.
"Optimism toward a Fed rate cut continued to lend support to the Taiex," said Mega International Investment Services analyst Alex Huang. The odds of a rate reduction in December soared to 85 percent after several Fed officials voiced support for a looser monetary policy. However, the Taiex faced stiff technical resistance ahead of 28,000 points, prompting some investors to take profits.
TSMC, which accounts for just over 40 percent of the stock exchange's market value, rose only 0.35 percent to close at NT$1,440.00, off a high of NT$1,455.00. "The stock still lagged behind the broader market due to worries over stretched AI stocks after recent solid gains," Huang noted.
Other semiconductor stocks showed mixed results. Smartphone IC designer MediaTek Inc. rose 4.10 percent to end at NT$1,395.00, while IC packaging and testing services provider ASE Technology Holding Co. ended down 0.43 percent at NT$229.50.
Among AI server makers, Hon Hai Precision Industry Co., second to TSMC in market value, lost 2.38 percent to close at NT$225.50, whereas Quanta Computer Inc. ended up 0.18 percent at NT$282.00. Power management solution supplier Delta Electronics Inc. lost 1.06 percent to close at NT$932.00, but WUS Printed Circuit Co. rose 1.28 percent to end at NT$119.00.
Bargain hunters focused on select old economy stocks, particularly in the petrochemical sector. Nan Ya Plastics Corp. rose 4.98 percent to close at NT$59.00 due to a spike in copper clad laminate prices announced by its tech affiliate. "In its core business, however, the petrochemical sector is still suffering from a supply glut," Huang remarked.
Cable and wire maker Walsin Lihwa Corp. rose 1.03 percent to close at NT$39.50, and lighting device maker China Electric Manufacturing Co. gained 0.81 percent to end at NT$12.50. The financial sector underperformed, falling 1.11 percent. Cathay Financial Holding Co. lost 2.43 percent to close at NT$64.20, and Fubon Financial Holding Co. fell 1.38 percent to end at NT$92.60.
Foreign institutional investors sold a net NT$19.47 billion in shares on the market Friday, as reported by the Taiwan Stock Exchange.