Taipei, March 25 (CNA) Shares in Taiwan bounced back from the previous slump Tuesday with large cap electronics stocks in focus on the back of gains in the United States overnight as U.S. news media reports said the Trump administration may implement more measured trade actions, dealers said.
The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 166.55 points, or 0.75 percent, at 22,273.19 after moving between 22,228,68 and 22,414.02. Turnover totaled NT$249.86 billion (US$7.57 billion).
Despite the upturn, the main board still failed to sustain all of its earlier gains and closed below the nearest stiff technical resistance, the 240-day moving average of 22,321 points.
“Today’s rebound largely reflected U.S. markets amid hopes of Trump’s narrower scope of reciprocal tariffs,” Hua Nan Securities analyst Kevin Su said.
“But turnover stayed low, indicating many investors appeared reluctant to chase prices for now, just waiting for the tariff policies to be finalized,” he said.
According to Su, Tuesday’s turnover fell below the average of about NT$285.6 billion in the previous five trading sessions.
Led by a 2.27 percent rise on the tech-heavy Nasdaq index overnight, the local electronics index rose 1.21 percent after contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most heavily weighted stock, gained 1.85 percent to close at NT$990.00, contributing 145 points to the Taiex’s rise.
“Without turnover expanding further, it will not be easy for TSMC to jump over high technical hurdles ahead of the psychological NT$1,000 mark,” Su said.
Among other semiconductor stocks, smartphone IC designer MediaTek Inc. rose 3.04 percent to end at NT$1,525.00, and TSMC’s IC assembly equipment supplier Scientech Corp. closed up 1.45 percent at NT$314.50.
IC packaging and testing services provider ASE Technology Holding Co. ended unchanged at NT$160.50.
Shares in iPhone assembler and AI server maker Hon Hai Precision Industry Co., second to TSMC in terms of market value, rose 1.23 percent to close at NT$165.00, giving additional support to the Taiex.
Quanta Computer Inc., another AI server supplier, ended unchanged at NT$249.50.
Non-tech stocks largely came off highs on profit taking, with Formosa Plastics Corp. down 1.09 percent to close at NT$38.25 and Nan Ya Plastics Corp. falling 1.38 percent to end at NT$32.05 due to worries over a global supply glut, Su said.
However, food stocks took a defensive role as Uni-President Enterprises Corp. rose 0.61 percent to close at NT$82.50, and Oceanic Beverages Co. gained 1.38 percent to end at NT$13.85.
In the mixed financial sector, Fubon Financial Holding Co. rose 0.79 percent to close at NT$89.70, while Cathay Financial Holding Co. ended unchanged at NT$65.00.
“Tuesday’s rebound did not help the Taiex climb out of its current consolidation as sentiment remains cautious,” Su said. “Investors had better watch closely when the Taiex rises above the 240-day moving average making itself technically healthier.”
According to the TWSE, foreign institutional investors bought a net NT$6.41 billion worth of shares on the main board Tuesday.
