The TAIEX yesterday surged 3.03 percent to 18,644.57, as heavyweight technology shares received a boost from the global buying of artificial intelligence (AI) suppliers over the Lunar New Year holiday, analysts said.
The local bourse resumed trading after a week in which US technology titans made concrete advances in line with upbeat AI growth expectations.
“The TAIEX mainly reflected the pickups on the Wall Street over the past week,” Nomura Asset Management Taiwan said, adding that shares of US chip giant Nvidia Corp have risen 25 percent this year and those of UK chip designer Arm Holdings PLC had almost doubled on strong sales and earnings guidance.
Photo: CNA
Taiwan, home to contract manufacturers of high-performance chips, AI servers and other electronics, was riding the global trend, Nomura said.
Specifically, shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), whose clients include Nvidia, Apple Inc and Advanced Micro Devices Inc, rose 7.89 percent to a record high of NT$697 after its American depositary receipts registered gains during the holiday, Nomura said.
TSMC’s rise came as little surprise in light of the close relations between the local bourse and the fate of major US technology stocks over the years, Nomura said.
Shares in chip tester and packager ASE Technology Holding Co (日月光投控) closed up 4.23 percent at NT$135.5, while those of AI server vendor Wistron Corp (緯創) rose 4.82 percent to close at NT$130.5, Taiwan Stock Exchange data showed.
Global index provider MSCI Inc’s announcement on Tuesday that it would raise Taiwan’s weighting in two of its major indices later this month lent further support to the local bourse, analyst Chen Wei-liang (陳威良) said.
ShunSin Technology Holdings Ltd (訊芯) is to be added to the MSCI ACWI Small-Cap Index, after the chip tester’s shares have soared 37.55 percent so far this year, Chen said.
Turnover was NT$492.695 billion (US$15.678 billion) after foreign institutional players raised their holdings by a net NT$56.26 billion and proprietary traders added a net NT$2.22 billion.
Mutual funds opted to take profits and their portfolios shrank by a net NT$1.11 billion, Taiwan Stock Exchange data showed.
By contrast, tourism plays took a hit from the government’s ban on group tours to China after Beijing failed to provide a favorable response to Taiwan’s unilateral opening up.
EVA Airways Corp (長榮航空) shares closed down 2.79 percent to NT$31.35, while China Airlines Ltd (中華航空) shares fell 2.44 percent to close at NT$20.
Analysts remain positive about AI shares going forward, as companies and organizations pour more money into AI development and applications, which they believe would shake up workplaces and people’s lives.
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
SECURITY RISK: If there is a conflict between China and Taiwan, ‘there would likely be significant consequences to global economic and security interests,’ it said China remains the top military and cyber threat to the US and continues to make progress on capabilities to seize Taiwan, a report by US intelligence agencies said on Tuesday. The report provides an overview of the “collective insights” of top US intelligence agencies about the security threats to the US posed by foreign nations and criminal organizations. In its Annual Threat Assessment, the agencies divided threats facing the US into two broad categories, “nonstate transnational criminals and terrorists” and “major state actors,” with China, Russia, Iran and North Korea named. Of those countries, “China presents the most comprehensive and robust military threat