Taiwan shares end lower but TSMC remains resilient

Taipei, May 11 (CNA) Stocks in Taiwan closed lower on Wednesday as market sentiment remained cautious about the U.S. Federal Reserve’s rate hike cycle, which prompted many overseas investors to shift their funds outside the Asian region, dealers said.

While the sell-off focused on old economy and financial stocks throughout the trading session, the flagship electronics sector resisted the decline as contract chipmaker Taiwan Semiconductor Manufacturing Co .(TSMC) remained resilient, helping to anchor the broader market, dealers added.

The Taiex, the weighted index of the Taiwan Stock Exchange (TWSE), ended down 55.45 points, or 0.35%, at 16,006.25, after trading between 15,953.27 and 16,081, 15. Revenue totaled NT$206.21 billion (US$6.94 billion).

The market opened 7.95 points lower and selling rose, pushing the Taiex to a mid-morning low for the day, after a mixed performance overnight in US markets, where the Dow Jones Industrial Average rose. fell 0.26% and the tech-heavy Nasdaq index rose. 0.98%, the dealers said.

TSMC

However, after the Taiex fell below 16,000, buying emerged as bargain hunters sought semiconductor heavyweights, particularly TSMC, which helped cushion the main chart’s fall. at the end of the session, the dealers added.

The electronics sector rose 0.03%, with the semiconductor sub-index gaining 0.56%. TSMC, the most weighted stock in the local market, rose 0.55% to close at NT$521.00 from a low of NT$518.00, its closest technical support.

Hua Nan Securities analyst Lu Chin-wei said a cycle of rate hikes by the Fed continued to affect investor sentiment, with many staying away, leading to low rotation.

“The purchase of TSMC came after the chipmaker presented a strong sales report the previous day, which indicated sound fundamentals,” Lu said. “Even if the stock falls below NT$518, it will likely hold above NT$500 as low valuation will attract many bargain hunters.”

TSMC, the world’s largest contract chipmaker, reported record April sales of NT$172.56 billion on Tuesday, up 0.3% from the previous month and 55% from the previous month. year, driven by strong demand for emerging technologies, even in a generally slow season for the semiconductor industry.

Other technology stocks

Lu said Wednesday’s buying was seen not only in TSMC but also in other semiconductor stocks, especially the recently hard-hit IC design companies, which helped the broader market. recover some of its past losses.

Among rising semiconductor stocks, smartphone IC designer MediaTek Inc. rose 1.10% to close at NT$829.00, and application-specific IC designer Alchip Technologies Ltd. . climbed 1.77% to close at NT$922.00.

Power management IC designer Silergy Corp. climbed 4.76% to close at NT$2,530, and IC packaging and testing service provider ASE Technology Holding Co. ended up 0.84% ​​at NT$96.20.

Some other major tech stocks ended flat, including iPhone maker Hon Hai Precision Industry Co., which closed unchanged at NT$103.00. Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., fell 0.31% to end at NT$1,615.00.

Meanwhile, power management solutions provider Delta Electronics Inc. fell 1.32% to close at NT$223.50, and flat panel display maker Innolux Corp. lost 1.32% to close at NT$223.50. lost 2.90% to close at NT$13.40.

Excluding technology sector

“While large-cap semiconductor stocks benefited from bargain-hunting and stole the show, non-tech stocks came under pressure on concerns about a fund flight, as the Fed raises interest rates,” Lu said.

The transportation sector, where major shipping stocks trade, lost 2.26%, with Evergreen Marine Corp., the largest containerized cargo shipper in Taiwan, down 3.02% to close at NT 144.50. $. Its competitor Yang Ming Marine Transport Corp. fell 2.75% to close at NT$124.00.

Elsewhere in the old economy sector, Wei Chuan Foods Corp. fell 2.31% to close at NT$21.15, and Uni-President Enterprises Corp., another food brand, fell 0.99% to close at NT$66.30.

In the financial sector, which lost 0.97%, Cathay Financial Holding Co. lost 3.10% to close at NT$56.20, and Fubon Financial Holding Co. fell 1.34% to close at 66. NT$.20, while E. Sun Financial Holding Co. rose 0.99%. to close at NT$30.65.

“The U.S. is expected to release its April Consumer Price Index report later today, which will give more clues about the Fed’s monetary policy to manage inflation,” said Lu. “Investors should keep a close eye on this data.”

According to the TWSE, foreign institutional investors sold NT$15.09 billion worth of shares on the main board on Wednesday.

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