Shares in Taiwan yesterday staged a solid technical rebound, surging more than 360 points as investors rushed to take advantage of a recent slump and pick up bargains, dealers said.
Buying focused on large-cap tech stocks, while financial and old economy heavyweights also rode the rebound, lending support to the broader market, dealers said.
The TAIEX closed up 361.06 points, or 2.35 percent, at the day’s high of 15,728.64. Turnover totaled NT$238.998 billion (US$8.04 billion), with foreign institutional investors buying a net NT$18.17 billion of shares on the main board, Taiwan Stock Exchange data showed.
Photo: CNA
The bellwether electronics sector, which anchored the TAIEX’s rebound, rose 2.22 percent, while the semiconductor subindex gained 1.84 percent.
“The recent selling on the local main board seems to have overshot the mark, prompting investors to pick up bargains soon after the market opened,” More Rich Securities Investment Consulting (摩爾投顧) analyst Adam Lin (林漢偉) said, referring to a decline of about 1,300 points (7.82 percent) that the TAIEX posted over the previous eight trading sessions, amid concerns about aggressive interest rate increases by the US Federal Reserve.
“With the second quarter coming to an end soon, some mutual funds are also dressing up their books for the quarter by raising their holdings to boost share prices,” Lin said. “In addition to tech stocks, financial and old economy stocks have become targets.”
The financial sector rose 3.4 percent amid hopes that a widening interest spread would boost banks’ bottom lines.
“It remains to be seen whether the main board will challenge the high technical hurdles around 16,000 points soon,” Lin said. “The TAIEX’s strength will depend on how the US markets will rebound down the road.”
In related news, Goldman Sachs Group Inc said that Taiwan-China tensions have risen to the highest in the past decade, but are now largely priced into Taiwan’s equities, based on two new indicators it has created.
The Cross-Strait Risk Index, which tracks news articles on geopolitical tensions, jumped after Russia’s invasion of Ukraine in February and the inverse correlation with broader Taiwan equities rose to the highest level in its time series, strategists, including Alvin So (蘇瑋忠) in Hong Kong and Timothy Moe (慕天輝) in Singapore, wrote in a note to clients.
“This suggests that the broader Taiwan market has started to price in cross-strait risk for the first time over the past decade,” they said.
Goldman also created a second indicator, the Cross-Strait Risk Barometer, to measure market-implied risks based on variables such as Taiwan’s tech exporters with exposure to China, as well as tourism stocks.
The analysts said the two gauges have spiked in the past three months as investors sharply priced in higher cross-strait risk and they now look to be “fairly priced.”
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
NO BREAKTHROUGH? More substantial ‘deliverables,’ such as tariff reductions, would likely be saved for a meeting between Trump and Xi later this year, a trade expert said China launched two probes targeting the US semiconductor sector on Saturday ahead of talks between the two nations in Spain this week on trade, national security and the ownership of social media platform TikTok. China’s Ministry of Commerce announced an anti-dumping investigation into certain analog integrated circuits (ICs) imported from the US. The investigation is to target some commodity interface ICs and gate driver ICs, which are commonly made by US companies such as Texas Instruments Inc and ON Semiconductor Corp. The ministry also announced an anti-discrimination probe into US measures against China’s chip sector. US measures such as export curbs and tariffs
The US on Friday penalized two Chinese firms that acquired US chipmaking equipment for China’s top chipmaker, Semiconductor Manufacturing International Corp (SMIC, 中芯國際), including them among 32 entities that were added to the US Department of Commerce’s restricted trade list, a US government posting showed. Twenty-three of the 32 are in China. GMC Semiconductor Technology (Wuxi) Co (吉姆西半導體科技) and Jicun Semiconductor Technology (Shanghai) Co (吉存半導體科技) were placed on the list, formally known as the Entity List, for acquiring equipment for SMIC Northern Integrated Circuit Manufacturing (Beijing) Corp (中芯北方積體電路) and Semiconductor Manufacturing International (Beijing) Corp (中芯北京), the US Federal Register posting said. The
India’s ban of online money-based games could drive addicts to unregulated apps and offshore platforms that pose new financial and social risks, fantasy-sports gaming experts say. Indian Prime Minister Narendra Modi’s government banned real-money online games late last month, citing financial losses and addiction, leading to a shutdown of many apps offering paid fantasy cricket, rummy and poker games. “Many will move to offshore platforms, because of the addictive nature — they will find alternate means to get that dopamine hit,” said Viren Hemrajani, a Mumbai-based fantasy cricket analyst. “It [also] leads to fraud and scams, because everything is now
RSS