Taipei: Shares in Taiwan closed higher Tuesday in a technical rebound from the previous slump as bargain hunters focused on select large-cap tech stocks, ignoring losses in the United States overnight, dealers said. After falling 1.03 percent Monday, the Taiex, the Taiwan Stock Exchange's (TWSE) benchmark index, ended up 221.74 points, or 0.81 percent, at 27,564.27 after moving between 27,477.10 and 27,741.89. Turnover totaled NT$469.67 billion (US$14.94 billion).
According to Focus Taiwan, the rebound largely reflected continued optimism toward AI development. Hua Nan Securities analyst Kevin Su noted that TSMC (Taiwan Semiconductor Manufacturing Co.), a significant player in AI stocks, climbed above the previous day's weakness, leading the broader market higher. Contract chipmaker TSMC, which accounts for over 40 percent of the Taiex's weighting, rose 1.42 percent to close at NT$1,430.00, contributing about 160 points to the Taiex's rise.
Other major semiconductor stocks showed mixed results. Smartphone IC designer MediaTek Inc. fell 2.08 percent to end at NT$1,415.00, while IC packaging and testing services provider ASE Technology Holding Co. rose 1.78 percent to close at NT$228.50. In the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co., second to TSMC in market value, ended unchanged at NT$222.00.
Kevin Su also mentioned that certain raw material stocks in nontech industries experienced a technical rebound, including steel stocks, which were buoyed by hopes that future reconstruction of war-torn Ukraine will increase demand. China Steel Corp., the largest steel maker in Taiwan, rose 1.34 percent to close at NT$18.85, and Tung Ho Steel Corp. gained 1.28 percent to end at NT$71.40. Additionally, Formosa Plastics Corp. added 1.28 percent to close at NT$28.00, while Nan Ya Plastics Corp. ended down 2.03 percent at NT$41.00.
In the financial sector, which rose 1.28 percent, providing further support to the broader market, Cathay Financial Holding Co. gained 2.78 percent to close at NT$66.60, and Fubon Financial Holding Co. added 0.33 percent to end at NT$92.10. Kevin Su remarked that the Taiex has encountered stiff technical resistance ahead of 27,796 points, the intraday high on Nov. 28, suggesting that the index may continue to move in a narrow range shortly.
According to TWSE, foreign institutional investors bought a net NT$13.53 billion worth of shares on the main board Tuesday.