Chip stocks pull TAIEX to all-time high

Bullish FEELING:
Local institutional investors would continue to buy stocks, but strong technical resistance could be seen before 18,250 points, an analyst said.

Yesterday, TAIEX took advantage of momentum from an earlier session to close above 18,000 points at an all-time high, with the benchmark electronics sector, particularly semiconductor stocks, leading the reprise.

“Rotational buying continued to dictate the local lead board,” said Alex Huang (黃國偉), analyst at Mega International Investment Services Corp (兆豐 國際 投 顧). “Today, expensive integrated circuits [IC] designers were in the spotlight.

TAIEX closed the day up 87.30 points, or 0.49%, at 18,048.94, breaking its previous high of 18,034.19 on July 15.

Photo: ANC

The indicator has risen 22.51% so far this year, poised for a third annual gain and outperforming most of its Asian peers.

“Today’s gains have boosted market sentiment, so I expect local institutional investors to continue buying at a time when many foreign institutional investors are absent, but strong technical resistance could be. observed before 18,250 points, “Huang said.

Despite the absence of many foreign institutional investors over the Christmas and New Year holidays, the market has received support from local investors who have stepped up their leveraged bets on a bull run.

“Taiwan stocks are expected to rise further next year due to sufficient funding and a positive tech outlook,” Shin Kong Investment Trust Co (新光 投信) Chairman Quincy Liu (劉坤錫) said. “The wafer and foundry industries are expected to remain healthy next year. “

Yesterday, turnover was relatively low at NT $ 236.446 billion ($ 8.53 billion), with foreign institutional investors buying NT $ 11.17 billion net of shares on the main board, the data shows. of the Taiwan Stock Exchange.

The electronics sector rose 0.62%, while the semiconductor sub-index rose 0.59%.

Leading the rally in the semiconductor industry, shares of smartphone chip designer MediaTek Inc (聯 發 科) rose 2.23% to close at NT $ 1,145 amid optimism over flagship chip shipments 5G Dimensity 9000 of the company.

This spurred the purchase of other high-priced IC designers, with shares of power management IC designer Silergy Corp (矽 力 杰) climbing 4.79% to close at NT $ 5,030 and those of application-specific integrated circuit designer Alchip Technologies Ltd (世 芯) increased 3.43 percent to close at NT $ 1,025.

Shares of the world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co (TSMC, US), rose 0.33% to close at NT $ 606.

The gains increased TSMC’s market capitalization from NT $ 51.8 billion to NT $ 15.71 trillion and contributed about 14 points to TAIEX’s rally, although weak sales limited the results. gains, dealers said.

Among other semiconductor stocks, those of contract chipmaker United Microelectronics Corp (聯 電) closed at NT $ 64.30, while shares of DRAM chipmaker Nanya Technology Corp (南亞 科技) rose by 1.19% to close at NT $ 76.60.

“While the tech sector was the engine of TAIEX, many stocks in the old economy seemed marginalized,” Huang said.

The transportation sector rose 0.49% on gains in airline stocks, with those of China Airlines Ltd (中華 航空) up 3.05% to NT $ 27 and shares of EVA Airways Corp (中華 航空) (長榮 航空) up 2.24% to close at NT $ 27.40.

However, shipping stocks were mixed.

Shares of Evergreen Marine Corp (運 海運) closed up 0.36% at NT $ 139.50, while those of rivals Yang Ming Marine Transport Corp (陽明 海運) and Wan Hai Lines Ltd (萬 海運)航運) closed unchanged at NT $ 122.50 and NT $ 199 respectively.

Bloomberg Supplementary Reports

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