The TAIEX yesterday surged almost 2 percent and smashed closing records, as investors were pleasantly surprised by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) fourth-quarter results and strong growth prospects this year, analysts said.
The weighted index closed up 598.12 points, or 1.94 percent, at 31,408.70 on turnover of NT$823.36 billion (US$26.08 billion).
At an investor conference on Thursday, TSMC reported higher-than-expected net income of NT$505.74, with gross margin topping 60 percent.
Photo: CNA
For this year, it forecast that revenue would surge almost 30 percent, while capital expenditure would rise to a record US$52 billion to US$56 billion.
“These figures simply told investors AI [artificial intelligence] demand is robust. Investors abroad and at home rushed to pick up the stock,” Mega International Investment Services (兆豐國際投顧) analyst Alex Huang (黃國偉) said.
After its American depositary receipts (ADRs) rose 4.44 percent overnight, TSMC’s common shares gained 2.96 percent to close at a high of NT$1,740 yesterday.
The stock, which accounts for more than 40 percent of total market value, contributed about 400 points to the TAIEX’s rise.
“A trade deal between Taiwan and the United States to cut [US tariffs] to 15 percent from 20 percent also eased market uncertainties,” Huang said.
United Microelectronics Corp (聯電), TSMC’s smaller rival, climbed 6.95 percent to NT$58.50, while smartphone IC designer MediaTek Inc (聯發科) added 1.01 percent to close at NT$1,505.
Old economy industries such as machinery firms also benefit from the reduced tariffs, with Allis Electric Co (亞力電機) surging 10 percent to close at NT$114 and Hiwin Technologies Corp (上銀科技) rising 3.05 percent to end at NT$219.50, Huang said.
Nan Ya Plastics Corp (南亞塑膠) rose 5.88 percent to NT$73.80 and Formosa Plastics Corp (台灣塑膠) ended up 0.94 percent at NT$43.
In the financial sector, which edged up 0.58 percent, Cathay Financial Holding Co (國泰金控) gained 1.33 percent to close at NT$76.20, and Fubon Financial Holding Co (富邦金控) ended 0.96 percent higher at NT$95.
“After TSMC, an earnings season for tech stocks in the United States will start soon. Keep an eye on it,” Huang said.
Foreign institutional investors yesterday net bought NT$39.92 billion in shares, Taiwan Stock Exchange data showed.
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