Taipei: Shares in Taiwan moved higher Tuesday after Donald Trump did not pledge new tariffs in his inauguration speech overnight as he had threatened previously, but gains were limited on reduced turnover, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark weighted index, ended up 33.19 points, or 0.14 percent, at 23,300.01 after moving between 23,174.02 and 23,377.64. Turnover totaled NT$255.09 billion (US$7.79 billion), compared with NT$279.92 billion Monday. The market opened down 0.33 points and eventually hit the day's low at 9:47 a.m. before rebounding and moving into positive territory. But just as the Taiex seemed poised to hit the day's high near the end of the session, it plummeted in the final minutes, capping the day's gains.
According to Focus Taiwan, Concord Securities analyst Kerry Huang noted, "Trump did not go through with his threat to raise tariffs on his first day, and that relieved the market to some extent." However, he added that the Taiex remained in consolidation with the Lunar New Year holiday looming, as turnover shrank. "Many investors were reluctant to chase prices for the time being," Huang said, expressing concerns about potential negative developments during the holiday. Wednesday will be the local stock market's last trading day before the holiday, with trading not resuming until February 3.
The electronics index saw a modest increase of 0.03 percent, closing at 1,302.62, with chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) ending unchanged at NT$1,120.00. Among other tech heavyweights, MediaTek Inc. rose 1.38 percent to NT$1,465.00, while ASE Technology Holding Co. remained unchanged at NT$172.00. Hon Hai Precision Industry Co., the iPhone assembler and AI server producer, increased by 0.28 percent to NT$178.50, and Quanta Computer Inc. rose 0.75 percent to NT$269.00.
Huang observed that buying focused on the financial sector due to expectations of increased cash dividends following a 63.7 percent rise in the combined net profit of Taiwan's 14 financial holding companies in 2024. Fubon Financial Holding Co. rose 1.10 percent to NT$91.50, and Cathay Financial Holding Co. gained 1.23 percent to NT$65.90. Bargain hunters also targeted steel stocks, which had been under pressure recently. The steel sector improved by 1.62 percent, with China Steel Corp. climbing 2.81 percent to NT$20.10, and Ta Chen Stainless Pipe Co. adding 1.95 percent to NT$33.90.
In contrast, the petrochemical sector saw a decline of 0.27 percent, affected by a drop in international crude oil prices following Trump's announcement to boost oil and gas production. Formosa Plastics Corp. decreased by 2.44 percent to NT$36.00, and Formosa Chemicals and Fibre Corp. fell 1.77 percent to NT$27.80. The Taiwan Stock Exchange reported that foreign institutional investors bought a net NT$259 million in shares on the exchange Tuesday.