The TAIEX posted its biggest gain in two weeks yesterday on expectations electronic parts makers will forecast better sales in the new year. Taiwan Semiconductor Manufacturing Co (TSMC,
The TAIEX rose 208.08 points, or 4 percent, to reach 5,372.81, boosting the index 5.1 percent over the last two days. Within the index, 496 stocks rose and 32 fell. The total value of shares traded yesterday was NT$121.1 billion (US$3.5 billion), up 39 percent from Monday.
"People expect companies to say they will get better orders next year," said Tu Kuei-shiong, who manages NT$200 million (US$5.7 million) in Taiwan stocks at Lian-Shan Investment Management Co in Taipei.
"Those that took money out of the market at 5,600 are now trying to buy back shares because they expect stocks to move up."
Tu has been buying shares such as computer maker Acer Inc (
The index has gained 13 percent in the year to date and 56 percent since its year low Oct. 3.
Chipmaker TSMC rose NT$2.5, or 3.1 percent, to NT$83.5. Last week, TSMC chairman Morris Chang (
United Microelectronics Corp (UMC,
Computer and parts makers rose after the Market Intelligence Center (市場情報中心) reported that Taiwan's share of global desktop computer production will rise 1 percent next year over this year as more companies from Japan and the US seek a cheaper production base.
Taiwan's desktop computer makers' share of global production are forecast to rise to 25 percent next year compared to 24 percent this year and are predicted to increase to 26 percent in 2003, the center said in a statement.
Acer Inc (宏電) rose NT$1.1, or 6.6 percent, to NT$17.9. Asustek Computer Inc (華碩電腦), the nation's biggest computer motherboard maker, rose NT$7.5, or 5.2 percent, to NT$153. First International Computer Inc (大眾電腦), a desktop computer maker, rose NT$0.75, or 6.6 percent, to NT$12.15.
Banks gained on expectations that the central bank will lower interest rates again if the US Federal Reserve cuts its key rate. Taiwan policy makers are concerned that any cut at present may attract some money out of Taiwan.
Another rate cut could help companies in Taiwan better meet their debt obligations to the banks and lower the financial institutions' non-performing loans.
Chinatrust Commercial Bank (中國信託銀行), the second-biggest lender by market value, rose NT$0.8, or 4 percent, to NT$20.9. Chang Hwa Commercial Bank (彰化銀行), the second-biggest listed lender by assets, rose NT$0.65, or 4.7 percent, to NT$14.45. First Commercial Bank (第一銀行), the biggest listed lender by assets, rose NT$1.3, or 6.6 percent, to NT$20.9.
Hon Hai Precision Industry Co (
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The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
TARIFF SURGE: The strong performance could be attributed to the growing artificial intelligence device market and mass orders ahead of potential US tariffs, analysts said The combined revenue of companies listed on the Taiwan Stock Exchange and the Taipei Exchange for the whole of last year totaled NT$44.66 trillion (US$1.35 trillion), up 12.8 percent year-on-year and hit a record high, data compiled by investment consulting firm CMoney showed on Saturday. The result came after listed firms reported a 23.92 percent annual increase in combined revenue for last month at NT$4.1 trillion, the second-highest for the month of December on record, and posted a 15.63 percent rise in combined revenue for the December quarter at NT$12.25 billion, the highest quarterly figure ever, the data showed. Analysts attributed the
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of artificial intelligence (AI) hardware spending would extend into this year. The go-to chipmaker for Nvidia Corp and Apple Inc reported a 39 percent rise in December-quarter revenue to NT$868.5 billion (US$26.35 billion), based on calculations from monthly disclosures. That compared with an average estimate of NT$854.7 billion. The strong showing from Taiwan’s largest company bolsters expectations that big tech companies from Alphabet Inc to Microsoft Corp would continue to build and upgrade datacenters at a rapid clip to propel AI development. Growth accelerated for
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