Local market gains over 1% as semiconductor stocks rebound
Shares in Taiwan closed up more than 1 percent Thursday as the semiconductor sector staged a strong technical rebound following gains on the Philadelphia Semiconductor Index overnight, dealers said.
Taiwan Semiconductor Manufacturing Co. ( TSMC, ) led the rebound as bargain hunters took advantage of the stock’s relatively low valuation after recent consolidation ahead of an investor conference scheduled to kick off following the market close, the dealers said.
While the high-tech sector attracted bargain hunting, the financial sector also steamed ahead, lending further support to the broader market amid optimism toward financial holding companies’ profitability, they added.
The weighted index on the Taiwan Stock Exchange ended up 116.81 points, or 1.22 percent, at the day’s high of 9,656.87, off an early low of 9,578.71, on turnover of NT$100.55 billion (US$3.22 billion).
The market opened up 0.52 percent in reaction to a higher Wall Street overnight and momentum accelerated as buying focused on semiconductor stocks, in particular heavyweight integrated circuit stocks such as TSMC and IC designer MediaTek Inc. ( ), to push the index even higher, the dealers said.
Buying Spread to Non-tech
Buying spread to the non-high tech sector, which helped the strength continue through to the end of the session, with the index closing above the 9,600 point mark, they said.
“Since TSMC posted gains, the broader market moved higher, climbing out of the doldrums of the previous sessions,” Hua Nan Secu- rities analyst Kevin Su said, adding that local IC stocks simply followed the 1.64 percent increase on the Philadelphia Semiconductor Index overnight.
Semiconductor Sub-index up
The local semiconductor subindex closed up 2.17 percent and the bellwether electronics sub-index ended up 1.47 percent.
TSMC rose 2.80 percent to close at NT$147.00, with 54.52 million shares changing hands. After the market close, TSMC announced that it posted NT$3.05 in earnings per share (EPS) for the first quarter of this year, the second-highest level after NT$3.08 recorded in the previous session.
“Judging from TSMC’s EPS, the stock still appears relatively cheap, despite the gains seen Thursday,” Su said. “But the future movement of the stock will depend on what fore- cast on growth the chip maker gives in today’s investor conference.”
Among other IC stocks, MediaTek rose 2.63 percent to close at NT$409.00 and United Microelectronics Corp. ( ) added 1.03 percent to end at NT$14.70.
Smartphone camera lens supplier Largan Precision Co. ( ), which has been dubbed one of the most important Apple concept stocks in the local market, gained 1.46 percent to close at NT$2,785.00. After the market close, Largan announced that it posted NT$4.41 billion in net profit, up 47 percent from a year earlier but down 41 percent from a quarter earlier.
In the financial sector, Mega Financial Holding Co. ( ) rose 1.54 percent to close at NT$26.40 and Fubon Financial Holding Co. ( ) added 1.60 percent to end at NT$57.00.