Taiwan stocks rose 0.62 percent on Monday to their highest close in over 13 months as investors looked for tech bargains, such as microchip maker TSMC, after some earlier Wall Street-inspired losses. The main TAIEX share index was up 38.70 points at 6,231.05, the highest finish since late April last year, extending last week's 1.4 percent advance.
But turnover fell to T$76.31 billion (US$2.44 billion) from the last session's T$88.85 billion.
"Selling pressure was not heavy in early trade and the late rebound showed that some people still have faith in the tech sector recovery," said Roger Lin, deputy manager at Pacific Securities.
Taiwan Semiconductor Manufacturing Co (TSMC), the market's most heavily weighted stock, gained 3.02 percent to T$54.50, reflecting an ex-dividend share price adjustment on Monday.
The world's top contract chipmaker also benefited after it raised its shipment, capacity utilisation and gross margin forecasts last week.
Smaller rival United Microelectronics Corp (UMC), the market's most active issue in terms of volume, added 0.43 percent to T$23.50 and memory chipmaker Powerchip Semiconductor was up 0.7 percent at T$21.50.
AU Optronics Corp, the world's number-three maker of display screens, also reclaimed earlier losses as the display sector is seen as having hit bottom and a slow recovery is expected.
AU shares rose 0.19 percent to end at T$53.10.
The tech sector jumped 0.68 percent, shrugging off a 0.67 percent drop on the US Nasdaq on Friday after Intel Corp raised its second quarter outlook by less than what some investors had hoped for.
Buying spread to financials and small-cap industrial shares.
Chang Hwa Bank gained 0.28 percent to T$18.15 on hopes that consolidation in the island's overcrowded banking industry will accelerate in the coming months.
Formosa Plastics Corp, Taiwan's petrochem titan, added 0.74 percent to T$54.30 and Far Eastern Textile was up 0.84 percent at T$24.15.
The over-the-counter market's TAISDAQ index fell 0.56 percent to close at 120.20, while June TAIEX index futures rose 1.05 percent to 6,240.
Comments
Comments are closed.