Sat, Dec 10, 2022 page12

• TAIEX rebounds, ending three days of declines

  TECH LEAD: Large IC chip stocks mainly drove the market’s advance, but buying was also seen in the biotech and shipping sectors, dealers said

  • Staff writer, with CNA
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  The TAIEX yesterday closed higher on a technical rebound after US markets rallied overnight, dealers said.

  Large semiconductor stocks primarily drove the gains, but buying was also seen in the shipping and biotech sectors, they said.

  The TAIEX ended up 152.39 points, or 1.05 percent, at 14,705.43 on turnover of NT$193.02 billion (US$6.3 billion).

  

  A man walks past an electronic stock board at the Taiwan Stock Exchange in Taipei on Sept. 22.

  Photo: CNA

  The market opened up 0.46 percent and its momentum continued, especially among semiconductor heavyweights, after a 2.67 percent increase on the Philadelphia Semiconductor Index and a 1.13 percent rise in the tech-heavy NASDAQ on Thursday.

  That interest pushed up the local semiconductor sub-index by 2.05 percent by the end of yesterday’s session, and the electronics index rose 1.34 percent.

  Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock in the local market, rose 2.12 percent to close at NT$481.50, and its gains alone contributed about 85 points to the TAIEX’s rise.

  “Today’s gains were largely technical in nature after the heavy losses in the local stock market in the past few sessions in line with its US counterparts,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang (黃國偉) said.

  “Market sentiment remained cautious due to worries over a recession in the United States because of large rate hikes by the Federal Reserve,” he said.

  Before yesterday’s rebound, the TAIEX had fallen 427.7 points, or 2.85 percent, in the previous three trading sessions.

  “TSMC again led the rebound, but the stock is expected to see stiff technical resistance ahead of NT$500 amid lingering worries that the global semiconductor industry would be hurt by inventory adjustments due to weakening demand,” Huang said.

  Interest in TSMC spread to other semiconductor stocks.

  Boosted by a rebound in the Baltic Dry Index, which gauges freight fares of bulk cargo shippers, the transportation sector rose 1.99 percent, Huang said.

  Among major bulk cargo shippers, U-Ming Marine Transport Corp (裕民航運) rose 3.05 percent to close at NT$47.25. Container cargo shippers also attracted buying, with Yang Ming Marine Transport Corp (陽明海運) closing 2.95 percent higher at NT$62.80, and Evergreen Marine Corp (長榮海運) ending up 2.32 percent at NT$154.50.

  “As a barometer of the Fed’s policy, the November US consumer price index [to be released on Tuesday] is expected to move the markets,” Huang said.

  “More importantly, the upcoming Fed’s policymaking meeting [on Tuesday and Wednesday next week] is worth watching because it will offer clues on what might happen to rates next year,” he said.

  According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$6.26 billion in shares yesterday.
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