Taipei, May 25 (CNA) Shares in Taiwan closed sharply higher Monday amid continued enthusiasm toward AI development and fewer concerns over the ongoing conflict in the Middle East, analysts said.<\/p>\n
The Taiex, the Taiwan Stock Exchange’s benchmark index, ended up 1,376.43 points, or 3.26 percent, at 43,644.40 after moving between 42,667.87 and 43,645.78. Monday’s point gains were the fifth largest in history.<\/p>\n
Turnover totaled NT$1.30 trillion (US$41.07 billion).<\/p>\n
“The Taiwan index followed a U.S. rally on Friday on expectations that the United States and Iran will reach a ceasefire agreement soon, which sent crude oil prices plunging,” Shin Kong Securities analyst Tom Tang said.<\/p>\n
“More importantly, today’s strong buying was sparked by AI on hopes that Nvidia Corp. CEO Jensen Huang will deliver positive leads in Taipei,” Tang said.<\/p>\n
Huang arrived in Taiwan on Saturday and is scheduled to give a keynote speech at the Taipei Music Center on June 1 to kick off this year’s Computex Taipei.<\/p>\n
“It was no surprise that the bellwether electronics sector continued to drive the Taiex higher,” Tang said, noting that electronics shares accounted for about 80 percent of Monday’s turnover.<\/p>\n
As the major AI chip provider, Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of total market value, rose 2.44 percent to close at NT$2,310.00. Its gains sent the electronics index 3.85 percent higher.<\/p>\n
Smartphone IC designer MediaTek Inc. soared 10 percent, the maximum daily increase, to end at NT$4,245.00. and IC packaging and testing firm ASE Technology Holding Co. also surged 10 percent to close at NT$617.00.<\/p>\n
Scientech Corp., TSMC’s IC assembly equipment provider, gained 4.69 percent to end at NT$916.00.<\/p>\n
Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. rose 4.40 percent to close at NT$261.00, and power management solution provider Delta Electronics Inc. jumped 9.31 percent to end at NT$2,290.00.<\/p>\n
“The local market is awash in liquidity, so investors also rushed to put their money in select old economy stocks today,” Tang said.<\/p>\n
Among the stocks targeted by rotational buying, China Steel Corp., Taiwan’s largest steel maker, surged the maximum 10 percent to close at NT$19.95, and China Steel Structure Corp. gained 2.15 percent to end at NT$42.80.<\/p>\n
On hopes that state-owned Taiwan Power Co. will invest more to improve electricity grid networks, Shihlin Electric & Engineering Corp. added 2.28 percent to close at NT$201.50, and Chung-hsin Electric & Machinery Manufacturing Corp. ended up 2.24 percent at NT$160.00.<\/p>\n
In the financial sector, Fubon Financial Holding Co. rose 2.73 percent to close at NT$97.70, and Cathay Financial Holding Co. ended 2.26 percent higher at NT$81.50.<\/p>\n
“Technically speaking, the Taiex is overheated after today’s strong showing,” Tang said. “I’m afraid the index could face wild fluctuations when it approaches 44,000 points.”<\/p>\n
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$49.46 billion in shares on Monday.<\/p>\n
(By Jeffrey Wu and Frances Huang) <\/p>\n
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