The TAIEX is likely to consolidate with an upward bias next week after rallying to a record high of 16,571.28 on Thursday, analysts said.
Heavyweight tech plays, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), could lead the charge after its American depositary receipt gained more than 5 percent to US$124.8, Chifar Securities Co (啟發投顧) said.
The local bourse is closed until Tuesday next week for the Tomb Sweeping Day holiday.
Photo: Wang Meng-lun, Taipei Times
The market has not yet responded to TSMC’s confirmation that it is to invest US$100 billion to fund capacity expansion and research and development of advanced process technologies in the next three years, Chifar said.
TSMC unveiled the rare multiyear investment plan due to customer demand amid a global chip shortage.
Shares of TSMC, a contract chipmaker that supplies Apple Inc, Nvidia Corp, Qualcomm Inc, Advanced Micro Devices Inc and other tech giants, have dropped more than 10 percent since the middle of February, in line with global tech share corrections, Chifar said, adding that it is likely TSMC would catch up with the main board soon.
More Rich Securities Co (摩爾投顧) said that listed companies are about to release earnings results for the first quarter, with the figures likely to beat expectations.
Companies from different sectors have voiced plans to increase selling prices amid growing demand from clients around the world.
Foreign investors, who last month trimmed their holdings of local shares by more than NT$150 billion (US$5.26 billion), might increase their stakes, More Rich said.
Still, investors should be cautious, as the TAIEX could meet resistance above the record high, it said.
Global markets are groping to assimilate the advance in 10-year US Treasury yields to above 1.7 percent, a sign that major central banks might have to end loose monetary policies earlier than expected as the world emerges from the COVID-19 pandemic, analysts said.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
Prices of gasoline and diesel products at domestic fuel stations are this week to rise NT$0.2 and NT$0.3 per liter respectively, after international crude oil prices increased last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week snapped a two-week losing streak as the geopolitical situation between Russia and Ukraine turned increasingly tense, CPC said in a statement. News that some oil production facilities in Alberta, Canada, were shut down due to wildfires and that US-Iran nuclear talks made no progress also helped push oil prices to a significant weekly gain, Formosa said
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,
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