Taipei: Shares in Taiwan closed sharply higher Monday, driven primarily by the electronics sector, after artificial intelligence-related stocks surged in the United States at the end of last week. The Taiex, the Taiwan Stock Exchange's benchmark index, rose significantly by 453.29 points, or 1.64 percent, closing at 28,149.54. The index fluctuated between 27,986.66 and 28,168.75 throughout the trading session, with a total turnover of NT$493.05 billion (US$15.62 billion).
According to Focus Taiwan, the market opened with a 1.05 percent increase following a 1.31 percent rise in the tech-heavy Nasdaq index on Friday. This momentum was maintained as Taiwan Semiconductor Manufacturing Co. (TSMC), a major AI stock, propelled the broader market forward. Analysts noted that TSMC's performance was instrumental in surpassing the 28,100-point mark. TSMC's shares increased by 2.45 percent to close at NT$1,465.00, contributing approximately 280 points to the Taiex's rise and boosting the electronics index by 2.02 percent.
Memory chip suppliers also experienced upward movement due to ongoing supply shortages. Nanya Technology Corp. saw a 3.15 percent rise, ending at NT$180.00, while Powerchip Semiconductor Manufacturing Corp. soared 10 percent, the maximum daily increase, closing at NT$40.45. Reports indicate that Micron Technology Corp. plans to collaborate with Powerchip to enhance memory chip production.
In the broader tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 1.13 percent to NT$224.00, and Delta Electronics Inc., known for its power management solutions for AI, gained 4.61 percent to close at NT$953.00. Analyst Kerry Huang from Concord Securities mentioned that buying interest also extended to non-tech stocks, particularly in the electric machinery industry, providing additional support to the Taiex.
The electric machinery index rose by 2.26 percent, with Teco Electric and Machinery Co. increasing by 4.16 percent to NT$87.70, and Fortunate Electric Co. up by 3.29 percent to NT$786.00. In the old economy sector, Taisun Enterprise Co., a cooking oil maker, experienced a slight rise of 0.28 percent, closing at NT$18.20, while Uni-Enterprises Corp., another food brand, fell 0.77 percent to NT$71.80.
The financial sector saw a 0.63 percent rise, with Cathay Financial Holding Co. increasing by 1.32 percent to NT$76.50, and Fubon Financial Holding Co. ending up 0.92 percent at NT$98.20. Furthermore, foreign institutional investors bought a net NT$22.62 billion in shares on the market Monday, further fueling the market's positive trajectory.