Lo­cal mar­ket gains over 1% as semi­con­duc­tor stocks re­bound

The China Post - - TAIWAN BUSINESS -

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

Sec­tor

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

2.17%

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.

Other Sec­tor

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.

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