Shares in Taiwan moved sharply higher Friday, closing above the 16,700-point mark, led by Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker.
The Taiex, the benchmark index on the Taiwan Stock Exchange (TWSE), opened at 16,426.76 and closed up 393.91 points, or 2.40 percent, at the day’s high of 16,781.19. Turnover expanded to NT$283.98 billion (US$10.13 billion).
The market drew support from strong buying in tech stocks, after TSMC posted higher-than-expected profit in the third quarter and upgraded its profit outlook at an investor conference Thursday.
All the major stock categories, except the textile sector, gained ground, with mechanical and electronics stocks scoring the highest gains.
Semiconductor shares accounted for nearly 40 percent of the total turnover, while stocks in the shipping industry made up just 14 percent.
TSMC, the most heavily weighted stock on the local market, rose 4.17 percent to end at NT$600.00, with 53 million shares changing hands on the TWSE.
United Mircroelectronics Corp. (UMC), the second largest contract chipmaker in Taiwan, closed 4.23 percent higher at NT$59.10. Among Apple Inc.’s suppliers, Largan Precision Co., a smartphone camera lens maker, gained 2.03 percent to close at NT$2,010.00.
Meanwhile, shares of iPhone assembler Hon Hai Precision Industry Co., second only to TSMC in terms of market capitalization, rose 2.82 percent to end at NT$109.50.
The shipping industry, however, came under selling pressure, with the top three marine shipping companies all closing lower.
Evergreen Marine Corp. fell 1.47 percent to end at NT$93.9, Yang Ming Marine Transport Corp. edged down 0.11 percent to close at NT$92.3, and Wan Hai Lines Ltd. finished 2.13 percent lower at NT$161.00.
The stock market’s rally on Friday resolved the crisis of its recent downward spiral, but a continued rise will depend on the performance of high-tech stocks in the United States over the next several weeks, Cathay Futures Consultant analyst Tsai Ming-han (???) said.
According to the TWSE, foreign institutional investors bought a net NT$27.90 billion worth of shares on the market Friday.
Source: Focus Taiwan News Channel