The TAIEX closed slightly lower yesterday as buying rotated to old-economy and financial stocks to offset losses in the electronics sector that emerged after technology stocks plunged on US markets.
Turnover remained thin, with many investors staying on the sidelines amid fears over negative leads that might emerge during the Lunar New Year holiday, dealers said.
The local market is closed from today to Feb. 6.
The TAIEX closed down 26.72 points, or 0.15 percent, at 17,674.40. Turnover totaled NT$224.109 billion (US$8.08 billion), with foreign institutional investors selling a net NT$15.11 billion of shares on the main board, Taiwan Stock Exchange data showed.
“After recent heavy losses, it seemed the local market attempted a technical rebound with old-economy and financial stocks riding the waves of rotational buying, which assuaged the impact from tech losses caused by rate-hike fears,” Hua Nan Securities Co (華南永昌證券) analyst Lu Chin-wei said.
“While foreign institutional investors continued to stand on the sell side to unload tech stocks — as the tech sector has lost its luster due to rate hike concerns — local institutional investors rushed to pick up old-economy stocks, in particular shipping stocks,” Lu said.
The transportation sector, where major shipping and airline stocks are traded, rose 2.21 percent.
“Shipping stocks, such as Evergreen Marine Corp (長榮海運), weigh a lot in the TAIEX and with their high prices, their gains did lend support to the broader market,” Lu said.
Evergreen Marine is the 12th-largest company by market capitalization on the main board, Taiwan Stock Exchange data showed.
The firm’s shares bounced back by 2.73 percent to close at NT$113.
Yang Ming Marine Transport Corp (陽明海運) and Wan Hai Lines Ltd (萬海航運) gained 3.68 percent and 1.37 percent to close at NT$98.6 and NT$147.5 respectively.
China Airlines Ltd (中華航空) rose 2.63 percent to close at NT$23.4 and EVA Airways Corp (長榮航空) gained 1.91 percent to close at NT$24.
In addition to the old-economy sector, rotational buying also focused on the financial sector, Lu said, adding: “I suspect government-led funds simply bought into financial heavyweights in a bid to prevent the TAIEX from falling further on the last trading session of the Year of the Ox.”
The financial sector rose 0.36 percent, with CTBC Financial Holding Co (中信金控) up 1.28 percent to close at NT$27.6 and Shin Kong Financial Holding Co (新光金控) up 0.91 percent to close at NT$11.05.
Fubon Financial Holding Co (富邦金控) added 0.13 percent to close at NT$75.6 and Cathay Financial Holding Co (國泰金控) gained 0.48 percent to close at NT$63.3.
The electronics sector remained haunted by the rate-hike concerns.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) fell 0.78 percent to close at NT$636 after a fall of 1.76 percent on Tuesday.
Led by TSMC, the electronics sector lost 0.62 percent, with the semiconductor subindex down 0.84 percent.
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
INVENTORY DOUBLED: Key parts have backed up in warehouses, halting notebook production, as Acer’s CEO said that a gradual reopening would not solve the problem PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving. While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference. “Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.” With key components unable to be delivered and backing up in
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
Covestro Taiwan Ltd (台灣科思創) yesterday launched a new research and development center that is to specialize in resin synthesis and fiberoptic coating after its parent company, Covestro AG, acquired a resins business from Royal DSM, it said. The German company in September 2020 agreed to buy the resins and functional materials business from Royal DSM for about 1.61 billion euros (US$1.69 billion), corporate data showed. The Dutch company’s local units, such as Covestro Resins (ROA) Ltd (帝昇) and Covestro Resins (Taiwan) Ltd (新力美), are next month to be integrated into Covestro Taiwan Ltd, with their employees continuing resins development, Covestro Taiwan said. The