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Tuesday, December 7, 2021
Stocks & Shares

Taiwan shares rise on technical rebound

Taiwan shares

The Taiex finished 118.98 points, or 0.74 percent higher, at 16,189.22

Shares in Taiwan staged a technical rebound Monday, finishing more than 100 points higher, amid interest in old economy stocks, dealers said.

Moreover, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) rebounded from its earlier losses, lending support to the broader market by the end of the session, they said.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), finished 118.98 points, or 0.74 percent higher, at 16,189.22 after swinging between 15,983.77 and 16,235.63. Turnover stood at $11.66 billion.

The market opened down 4.74 points and soon dropped to the day’s low on follow-through selling from Friday, when the Taiex fell 1.34 percent, on mixed performance on the U.S. markets the previous day, dealers said.

With the Taiex falling below 16,000 points, bargain hunters turned active, picking up stocks that had been hit by recent profit-taking, dealers said.

The focus was on TSMC, but the buying also rotated to old economy stocks, on optimism about strong global demand, and it continued until the end of the session, dealers said.

Looking at today’s movement, I think many investors saw some buying opportunities when the Taiex fell below 16,000 points, Mega International Investment Services Corp. analyst Alex Huang said.

Shipping stocks made a strong showing on increasing freight rates, amid solid demand for raw materials cargo and as suppliers climb out of the COVID-19 doldrums, Huang said.

In the shipping sector, which advanced 5.95 percent, Evergreen Marine Corp., the largest shipping company in Taiwan, surged by the daily maximum 10 percent to end at NT$45.85 ($1.61). Its competitors Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. also climbed 10 percent to finish at NT$35.85 ($1.26) and NT$54.50 ($1.92), respectively.

Among raw material suppliers, Asia Cement Corp. gained 3.15 percent to end at NT$45.80 ($1.61), and Taiwan Cement Corp. added 7.26 percent to also finish at NT$45.80 ($1.61).

In the petrochemical sector, which advanced 1.93 percent on higher international crude oil prices, Formosa Plastics Corp. ended up 2.99 percent at NT$100.00 ($3.52), Nan Ya Plastics Corp. gained 2.55 percent to finish at NT$76.40 ($2.69), and Formosa Chemicals & Fibre Corp. added 2.38 percent to end at NT$86.20 ($3.03).

The tech sector got a boost from TSMC’s rebound, while iPhone assembler Hon Hai Precision Industry Co. continued to rise, as investors remained upbeat about its venture into the development of electric vehicles, Huang said.

TSMC, the most heavily weighted stock on the local market, added 0.34 percent to end at NT$593.00 ($20.85), coming off an early low of NT$586.00 ($20.61).

United Microelectronics Corp., a smaller contract chipmaker, advanced 4.67 percent to end at NT$48.20 ($1.69).

Hon Hai, second only to TSMC in terms of market capitalization, jumped 5.26 percent to end at NT$130.00 ($4.57).

Flat panel makers, boosted by tight supply, also advanced, with AU Optronics Corp. gaining 4.71 percent to close at NT$20.00 ($0.70), and rival Innolux Corp. adding 10 percent to end at NT$18.85 ($0.66).

However, Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., shed 1.19 percent to close at NT$3,315.00 ($116.57).

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